Online gaming giant The Stars Group, which oversees the massive brands PokerStars and Sky Betting & Gaming, has posted their 2018 financials, with the group boasting a jump in revenues but posting a loss for the period.
Key financial indicators for the year ending December 31st, 2018 were:
- Revenues up to $2 billion, up 54.6% from 2017
- PokerStars and BetStars brands revenues of $1.3 billion, up 9.7% from last year
- Sportsbetting revenues up 60.7% to $79.1 million
- Casino revenues up 28% to $428.4 million
- Online poker up 1.1% to $886.6 million
- Sky Bet brand revenue of $394.1 million
- BetEasy (formerly CrownBet) revenues of $196.3 million
- EBITDA up 30.1% to $780.9 million
- Costs of revenue up 85.5% to $459.2 million
- General expenses up more than double to $984.2 milion
- Marketing costs up 89.8% to $293 million
- Research and development costs of $40 million
- Operating profit down 43.5% to $252.9 million
- Finance related costs up 129.8% to $363.9 million
- Overall loss of $108.9 million, down from a profit of $259.3 million
Commenting on the results company CEO Rafi Ashkenazi said, "2018 was a landmark year for the company. We completed the acquisitions of Sky Betting & Gaming in the UK and BetEasy in Australia, extended our licensed footprint to 21 jurisdictions around the world and began laying the foundations to grow our presence in the US."
"Our International business saw strong organic growth in the year despite restrictions in certain markets and lapping the initial roll-out of our Stars Rewards program. Our United Kingdom and Australia segments both performed in-line with our expectations during the fourth quarter, and we believe they are currently well-positioned to continue gaining market share in 2019."
"As we look at 2019 and beyond, 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.
"We are pleased with our performance in the first two months of the year, underpinning our confidence in our financial guidance for 2019, and we are currently on track to deliver the full $70 million in cost synergies from the acquisition of Sky Betting & Gaming within the current year alone, with potential opportunities for incremental synergies under review."