The Stars Group CEO Rafi Ashkenazi hailed “a landmark year” for the igaming giant, following the acquisition of Sky Betting and Gaming in the UK and BetEasy in Australia, in addition to the laying of foundations in the US.
The group’s full-year financial guidance for 2019 shows an expectation for revenue of US$2.64bn to $2.765bn, adjusted EBITA of $960m to $1.01bn and adjusted diluted net earnings per share of between $1.87 and $2.11.
Ashkenazi said: "2018 was a landmark year for the company. We completed the acquisitions of Sky Betting & Gaming in the UK and BetEasy in Australia, extended our licensed footprint to 21 jurisdictions around the world and began laying the foundations to grow our presence in the US.
"Our international business saw strong organic growth in the year despite restrictions in certain markets and lapping the initial roll-out of our Stars Rewards program. Our UK and Australia segments both performed in line with our expectations during the fourth quarter, and we believe they are currently well-positioned to continue gaining market share in 2019.
"As we look at 2019 and beyond, we are excited to take advantage of the opportunities ahead of us by leveraging our leading positions in attractive markets, strong brands, technology and operating expertise.
“We are pleased with our performance in the first two months of the year, underpinning our confidence in our financial guidance for 2019, and we are currently on track to deliver the full $70m in cost synergies from the acquisition of Sky Betting & Gaming within the current year alone, with potential opportunities for incremental synergies under review.”
In 2018, The Stars Group grew its total revenue by 54.6 per cent to $2.029bn ($1.312bn) and gross profit by 47.4 per cent to $1.57bn ($1.065bn).
Revenue for Q42018 and the year increased primarily as a result of the contribution of revenue from Sky Betting and Gaming and BetEasy, driven also by growth in the international segment, primarily through the continued development of real-money online casino and sports betting offerings.
The Stars Group ended the year with approximately $393m in operational cash and $5.45bn of debt on its balance sheet, resulting in net debt of $5.0bn.
At the end of December, the Kentucky Court of Appeals ruled in The Stars Group's favour and reversed in its entirety the $870m judgment issued against it by a trial court judge in December 2015 under a centuries-old statute and relating to alleged losses by Kentucky residents who played real-money online poker on PokerStars' website during a period between 2006 and 2011. The Supreme Court of Kentucky is currently considering whether to hear the Commonwealth's appeal of the reversal.
In the second half of 2018, following the PASPA repeal, The Stars Group entered into market access agreements with Mount Airy Casino and Eldorado Resorts which, combined with its existing market access deal in New Jersey with Resorts Casino Hotel, gives the group potential access to 13 states.
The Stars Group also launched its BetStars online sports betting brand in New Jersey and became an authorised gaming operator of the NBA.
