Poker

The Stars Group organic revenues up 7% as poker slips back

Operator has begun integrating Sky Betting & Gaming and projects $5m synergies this year

The Stars Group today reported a 7% rise in Q3 revenues from its core PokerStars and BetStars business, as the firm continues to integrate the recently acquired Sky Betting & Gaming.

So-called ‘international’ revenues from the core business hit $352m, with poker down almost 4% year-on-year to $213m. Stars said poker revenues were flat when accounting for currency fluctuations, in part due to its exit from Australia in September last year.

Online casino revenues climbed 29% to $108m, driven by the addition of around 250 new games to PokerStars Casino and launches in new markets.

Elsewhere BetStars revenues were up 80% year-on-year to $21m, with Stars hailed product and content improvements as well as the impact of new market launches and the World Cup.

“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 & Gaming, despite unfavorable sporting results during the period,” said CEO Rafi Ashkenazi.

“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,” concluded Ashkenazi.

Overall group revenues, when accounting for the addition of Sky Betting & Gaming and BetEasy (formerly CrownBet) were $572m, an increase of 74%.

Stars said the integration of SBG was underway, with approximately $5m of synergies expected to be achieved before the end of the year.

The firm said 53% of the projected $70m synergies would come from headcount and other staff costs, 23% from purchasing costs and 24% from other cost savings.

SBG saw overall revenues climb 3.7% to £151.7m, although sportsbook revenues actually fell by 5% thanks to a lower margin. Stakes grew 17% and SBG said revenue would have grown by the same amount given a typical hold rate. Gaming revenues were up 15.6%.

Poker | The Stars Group

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