Toronto TSX-listed The Stars Group Inc has published its first trading update as an enlarged enterprise, incorporating the acquired assets of Sky Betting & Gaming (Sky Bet) and BetEasy Australia.
Closing a group-wide transformative period, the Stars Group announces Q3 2018 (period ending 30 September) group revenues totalling $570 million (Q3 2017: $330m).
The Toronto enterprise displays its enlarged capacity, reporting consolidated year-to-date revenues which surpass the $1.3 billion mark, combined with YTD gross profits of $1 billion.
Incorporating its new international assets, Stars Group governance declares a Q3 period ‘adjusted EBITDA’ of $200 million, contributing to a 20% increase in YTD adjusted EBITDA to $541 million ($453m).
Attributing a series of cost adjustments related to its M&A expansion, the Stars Group reports a group operating income of $70 million, combined with period net earnings of $10 million.
Funding its international M&A activity, the Stars Group has restructured its corporate debt capacity to $5.65 billion, with the company holding circa $419 million in operational cash.
The Stars Group governance and Sky Bet’s newly structured management team have begun executing integration plans, targeting group expected to deliver co-synergies of at least $70 million.
“This was a landmark quarter during a transformative year for the company as we begin to deliver on our vision to become the world’s favourite iGaming destination,” stated Rafi Ashkenazi, The Stars Group – Chief Executive Officer.
“We completed our acquisition of Sky Betting & Gaming, which was cleared by the CMA in October, making us the leader in the UK online betting and gaming market. We also launched BetEasy in Australia and sports betting in New Jersey.
“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.”
The Stars Group – Consolidated Q3 2018 – Overview