TSG expects $15m in Q1 US losses on increased customer acquisition efforts
Operator reports record customer activity across online poker and casino in NJ and PA
Fox Bet and PokerStars owner The Stars Group (TSG) in expecting to record $15m in losses in Q1 2020 on continued customer acquisition efforts.
The firm saw increased customer activity across its online poker and casino products in New Jersey and Pennsylvania during the three months.
It received recent licensing approvals in Colorado and West Virginia and expects to launch betting there in coming months.
TSG Group Q1 revenue is expected to top $735m, a record return for the poker and betting operator after a 27% year-on-year increase.
In its latest trading update, the Toronto-listed operator revealed its operating income is expected to rise 133% year-on-year to between $140m and $149m.
Company adjusted EBITDA is expected to increase by 51% year-on-year to between $291-$297m, while adjusted net earnings are also expected to rise 78% to between $185-$192m.
TSG said increased revenue was buoyed by “continued strong underlying momentum in customer activity” in its UK and Australia segments, as well as improvements in its international business.
The firm expects its merger with FanDuel parent Flutter Entertainment to close in Q2 2020.