Sky Betting & Gaming revenues up 30% to £670m
FY18 figures boosted a “sustained run” of operator-favourable sporting results but growth slows during H2
Sky Betting and Gaming (SBG) enjoyed a 30% rise in annual revenues to £670m for the year ended 30 June, according to new figures filed by The Stars Group.
SBG betting revenue for the year climbed 37% to £407m, thanks to increased stakes (+13%) and a heathy win margin of 10.5%.
SBG said it saw a sustained run of operator-favourable sporting results during the year, particularly on European football, pushing margin above its expected level of approximately 9%.
Gaming revenue for the year was £239m, up 19% year-on-year, which SBG attributed to ongoing product innovation like its Bonus Time feature, continued strong promotions, and exclusive content launches.
Elsewhere the firm reported a 43% rise in adjusted EBITDA to £209m, with revenue increases partially offset by a 25% increase in total operating costs.
“The 2018 fiscal year was another strong year for SBG, with continued product leadership and innovation,” said CEO Richard Flint.
“We enjoyed another year of growth, extending our leadership as the UK’s most popular online betting and gaming brand. We also continued our investment in brand, technology and people, and continued delivering innovative products that meet the needs of our customers, all of which we believe combined to drive strong operating results.”
However, growth seemed to slow somewhat in the latter half of the year, with Q3 revenues growing at 18% to £157m , while the most recent quarter to June 2018 saw revenue up 15% year-on-year to £174m.
Regulus Partners highlighted a “noticeable gapping down in growth” as the UK online market overall slows and SBG reaches maturity.
Adjusted EBITDA was flat at £52m, as the firm as invested heavily in marketing ahead of the World Cup.
“We are excited about SBG’s potential as the fastest growing and one of the largest online and mobile sports betting and gaming businesses in the UK,” said Rafi Ashkenazi, Stars CEO.
Stars’ acquisition of SBG is still being reviewed by the Competition and Markets Authority, which can veto the acquisition on anti-competition grounds.