Growth in the UK and Australia segments has helped The Stars Group achieve positive results in the third quarter of the year.
Canada.- The Stars Group has reported its financial results for the third quarter ended September 30. Revenue growth in the UK and Australia segments has helped The Stars Group offset ongoing disruption in lower-priority markets.
Rafi Ashkenazi, CEO of The Stars Group, explained that the third-quarter results were robust and in line with expectations. The results were also supported by strong revenue growth in UK and Australia segments, which helped offset both the ongoing disruption in certain lower-priority international markets and continued foreign exchange headwinds across the business.
The UK and Australia segments were driven by strong underlying trends in customer activity and revenues across the segments, as well as a year-over-year increase in Betting Net Win Margin.
During the quarter, online sports betting was the largest product vertical (35%), followed by online casino (31.3%) and online poker (30.9%), while 77% of consolidated revenues were derived from locally regulated or taxed markets.
“We have also made rapid progress in the U.S. following our landmark FOX Sports deal in May, with the launch of our FOX Bet products at the start of the professional football season in New Jersey and Pennsylvania, and some very encouraging early signs from our FOX Sports Super 6 nationwide free-to-play games.”
The agreement with Flutter
The combination of the companies will create a global leader in sports betting and gaming. The Combined Group will feature a diverse portfolio of leading brands, including FanDuel and FOX Bet. They estimate that the merge will allow them to benefit from an enhanced global platform and improved local market reach. On a proforma basis, the Combined Group’s annual revenue would have been £3.8 billion in 2018, making it the largest online betting and gaming operator globally.
“We remain excited about the opportunities in front of us as the combination will enhance and accelerate each company’s growth strategy by providing a diverse portfolio of leading brands and complementary best-in-class products with a broad geographic reach,” said Ashkenazi.