Sky Betting & Gaming Now Drives The Stars Group
When The Stars Group first stated its intention to acquire gaming and betting giant Sky, the deal was cited as being the makings of the largest new player in the games and entertainment field. And it turned out to be worth the effort and the money because The Stars Group has just released its revenue figures for the first 6 months of the year and has confirmed that Sky Betting & Gaming is the number 1 driving force behind the 51.4% year-on-year increase.
What’s more, the operator also saw its net earnings increase by an astounding 140.1%. Getting down to the actual figures, the group reported that its total revenue for the 6 months leading up to and including June 30th amounted to a whopping $1.22billion. Quite the improvement when compared to last year’s $804.4 million for the same financial period.
Buffering The Decline
What this means is that there is at least a measure of over-performance with which to offset the decline experienced by the group’s international business performance. The group cannot be particularly happy with this particular turn of events, as its international business remains its primary source of income.
The group has reported that its international revenue has taken a 9.5% knock, coming in this year at $662.5 million. Betting revenue proved to be a light in the dark as far as international business goes, with all other areas having experienced a general decline.
Sports Betting Over-Performed
But all wasn’t lost on the international front, at least not on the Australian front. The Stars Group owns CrownBet as well as William Hill’s former Australian assets. Betting revenue ensured an impressive 74.4% spike in revenue income. The year-on-year improvement saw betting revenue income spike all the way up to $220.9 million and gaming revenue increase to an impressive $182.9 million.
The impact of the Sky Betting & Gaming acquisition cannot be overestimated. In effect, the acquisition ensured that a net loss totalling $80.5 million for the first half of the year was transformed into net earnings totalling $32.3 million. This in turn saw adjusted EBITDA increase by 25.9% and all the way up to a very positive $432.1 million.
It must be pointed out that online sports betting was responsible for 36% of all revenue tallied for the first half of 2019. Last year, the apportionment came to a considerably more conservative 20%.