Canada – It has been reported today that Canadian gaming and online gambling firm; The Stars Group, has published its financial results for the full 12 months of last year, along with data for the fourth quarter of 2019.
Highlights from the figures and events within the firm’s activities included the launch of Fox Bet with sports betting proving to be one of the main sources of income for the company.
The Stars Group’s Chief Executive Officer Rafi Ashkenazi commented on the report:
“In 2019, we continued to execute on our strategy to deliver long-term sustainable growth and become the world’s favourite iGaming destination. We not only began to see the full-year benefits of our transformative 2018 acquisitions, but executed on delivering a landmark media partnership in the U.S., with the launch of FOX Bet, strengthening our position in this emerging market. We also focused on creating shareholder value through efficient capital allocation, prepaying over $450 million of debt during the year.”
The company was pleased with the financial figures given the acquisition of Sky Betting & Gaming and highlighted progression plans for the next 12 months.
“In-line with our expectations, we exited 2019 with a strong fourth quarter with Constant Currency Revenue growth of 7% year-over-year driven primarily by the continued impressive underlying performance of our primary sports betting brands. With sports betting now our largest product vertical and 81% of our revenues coming from locally regulated or taxed markets, we are well positioned for diversified growth in 2020 and beyond.”
The Stars Group currently produces and offers online gaming products and services including poker, casino and sportsbook through its online gaming division; Stars Interactive, whereby the leading brands include: PokerStars, PokerStars Casino, BetStars and Full Tilt Poker.
Rafi Ashkenazi, who has worked at the firm since 2016 added:
“We entered 2020 with the full $100 million run-rate of expected cost synergies from our 2018 Sky Betting & Gaming acquisition and earlier this month prepaid an additional $100 million of debt, underpinning our ability to execute on complex integrations and the highly cash-generative nature of our business model. In addition to cost synergies, we have detailed plans in place to continue driving revenue synergies and to increase investments in product and marketing, giving us confidence in continued revenue growth in the years ahead. In 2020, we plan to further enhance the global appeal of the PokerStars brand, including by launching the PokerStars Sports brand, leveraging the operational capabilities of our Sky Betting & Gaming business, and launching television advertising for PokerStars Casino.”
Overall, the company saw a positive 5% change in total revenue compared with the previous year and more than a 2% change in gross profit compared with 2018’s figures.