The Stars Group, the Toronto-listed owner of PokerStars, PokerStars Casino, BetStars, Full Tilt, and the PokerStars Live brands, has reported a robust set of financial results for the first quarter ended March 31, 2018 showing gains in each of its poker, casino and sportsbook divisions. Overall revenues for the quarter increased approximately 23.8 per cent year-over-year. Real-money online poker revenues and real-money online casino and sportsbook combined revenues represented approximately 62.6 per cent and 34.2 per cent of revenues for the quarter, respectively.
In its poker business, the group saw real money revenues from online ahead to $245.9m, equal to an increase of approximately 12.4 per cent year-over-year. The increase in poker revenue was primarily driven by the positive impact of the Stars Rewards loyalty program, foreign exchange fluctuations, and the introduction of shared poker liquidity in France and Spain, as offset by, among other things, the cessation of operations or difficult operating conditions in certain markets including Australia and Colombia.
Real-money online casino and sportsbook combined revenues for the quarter were $134.5m, up circa 55 per cent year-over-year. During Q1, 20.7 per cent of the combined casino and sportsbook revenues related to sportsbook revenues. The increase in casino and sportsbook combined revenue was primarily driven by continued improvements in the group’s casino and sportsbook product offerings, positive impacts of foreign exchange fluctuations, and the addition of revenue related to the acquisition of a majority of the equity interests in CrownBet.
“The Stars Group’s strong first quarter results continued our organic growth trajectory,” stated CEO Rafi Ashkenazi. “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.”
“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 realising our vision of becoming the world’s favorite igaming destination.”