The Stars Group recorded a 73.6 per cent increase in year-on-year revenues as it posted third quarter results boosted by the acquisitions of Sky Betting and Gaming and BetEasy.
Group revenues for Q3 2018 stood at US$572m, up from $329m the previous year, with gross profit of $443m up by 65.8 per cent from $267m.
For the full year up to September 30, The Stars Group reported revenues of $1.38bn (Q3 2017: $952bn), a rise of 44.6 per cent.
Adjusted EBITDA for the quarter increased 27.3 per cent to $198m, driven by the acquisitions and increased gross profit from organic growth within the International segment. Adjusted EBITDA margin for the quarter decreased 26.7 per cent year-over-year, primarily driven by the higher contribution from the betting and gaming verticals within each segment.
In August 2018, The Stars Group partnered with Mount Airy Casino Resort to enter Pennsylvania’s online sports betting and gaming market, while on September 13, 2018, it launched its BetStars online sports betting brand in New Jersey in partnership with Resorts Casino Hotel.
"This was a landmark quarter during a transformative year for the company as we begin to deliver on our vision to become the world's favorite igaming destination," said The Stars Group CEO Rafi Ashkenazi.
"We completed our acquisition of Sky Betting and Gaming, which was cleared by the CMA in October, making us the leader in the UK online betting and gaming market. We also launched BetEasy in Australia and sports betting in New Jersey.
"We are pleased with our quarterly results, which reflect both continued organic growth from our International business and contributions from both BetEasy and Sky Betting and Gaming, despite unfavorable sporting results during the period.
"As we continue our transformation and look towards 2019, 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.”
