Renowned online gambling company, The Stars Group has reported a 23 percent year-on-year increase in its revenue during the first quarter of this year. Issuing its first trading update of the year, the company reported group revenues that summed up to $393 million – this surpassed the $317 million that it accrued during the same period last year.
The company’s net earnings went up 13.1 percent year-on-year during Q1 2018, which saw it rise to $74.3 million while driving a 9.1 percent increase in diluted net earnings during the first quarter to $0.36 per share. The company’s higher revenues were reflected in both its adjusted EBITDA as well as its adjusted net earnings which rose year-on-year by $175 million or 15.9 percent and $139 million or 22.7 percent, respectively. Furthermore, the net revenue inflows from operating activities went up by 38.2 percent year-on-year from last year’s Q1 high of $95.5 million to a whopping $132 million in Q1 of 2018.
However, there are reports that the double-digit revenue growth that the company reported was largely due to the dramatic currency exchange fluctuations. Nonetheless, as the Stars Group CEO pointed out, the first quarter results are a great indication of the gaming company’s organic growth trajectory. This should make it easier for The Stars Group to appeal to the Pennsylvanian gaming market which they hope to eventually get into – the application for the licenses will be opened by the Pennsylvania Gaming Control Board in June.
“We are pleased with the performance of each of our verticals, poker, casino, and sportsbook, which are benefiting not only from the continued success of Stars Rewards but also from our strategy of focusing on the customer and continued improvements to our product offerings,” said Rafi Ashkenazi, The Stars Groups’ Chief Executive Officer. “Moving forward, the exceptional foundation of our existing business will be complemented by our acquisitions of CrownBet and William Hill Australia and expected completion of the Sky Betting & Gaming acquisition. These acquisitions will help diversify our revenue base, increase our exposure to regulated markets, and transform our combined sportsbook into a second customer acquisition channel. These new additions will accelerate not only the organic growth we are seeing in our existing business but also our progress towards realizing our vision of becoming the world’s favorite iGaming destination.”