Report: The Stars Group Relying Less On Poker, More On Sports Betting For GrowthOnline Poker Drops From 53 Percent To Just 30 Percent Of Company Revenue |
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The Stars Group (NASDAQ: TSG) released it’s second quarter earnings report Monday, revealing a 20 percent decrease per share. This is despite the 51 percent increase in total revenue year over year.
The majority of that take came from the company’s acquisition of Sky Betting & Gaming in July of 2018. The Stars Group, which is the parent company to online poker site PokerStars, has become increasingly more reliant on sport betting, with the product vertical increasing from 20 to 36 percent of overall revenue. In May, the company announced a sports betting partnership with Fox Sports to launch Fox Bet and also signed a deal with the National Basketball Association.
Online poker, which last made up 53 percent of The Stars Group revenue, was down to just 30 percent. Online casino revenue also slipped, from 31 to 25 percent.
“The second quarter underpinned the success of last year’s acquisitions, particularly with the record performance of Sky Betting & Gaming and our increasing product and geographic diversification, as we continue to transform and position the business to execute on our strategy for strong, sustainable future growth,” said Stars Group CEO Rafi Ashkenazi.
“2019 has been and remains a year of integration, execution and debt reduction. We are committed to those key strategic priorities for the rest of the year while we also build our foundation and momentum to become a market leader in the U.S. We are confident that the actions we have taken over the last year, and are pursuing now, including to reassess our fixed cost base, put us in a strong position to deliver our mid-term growth targets from the end of 2019.”
With adjusted net earnings falling 10 percent to $243 million, The Stars Group has revised their EBITDA expectations. The company’s stock price bottomed out roughly 20 percent to 12.8 per share with the news.
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