TSG Q3: Sky Bet growth offsets PokerStars struggles
Sky Betting & Gaming pro forma revenues up 21%cc as early-year offers continue to pay dividends
The Stars Group has reported a 14%cc rise in Q3 revenue to $653m, with growth from Sky betting and Gaming and BetEasy in Australia offsetting a decline in the core PokerStars business.
Revenue from the PokerStars division was down 4.2%cc to $337m thanks to continued disruptions in certain markets, including restrictions on payment processing and app downloads.
Revenues from disrupted markets (15% of mix) were down 32%, while the rest of the business was up 3% cc.
Sky Betting & Gaming (SBG) saw pro forma revenues up 21%cc to $239m thanks to increased stakes and a 9.4% net win margin in betting, and new products in gaming, including Sky Lotto.
Australia revenues (BetEasy) were up 46%cc to $76m.
“Our third quarter results were robust and in-line with our expectations,” said group CEO Rafi Ashkenazi.
“We have also made rapid progress in the US 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.”
PokerStars HQ on the Isle of Man
Ashkenazi said the firm has largely completed the integration of Sky Betting & Gaming, and expected to exit 2019 with a run-rate of the full $100m of expected cost synergies.
“We are now beginning to execute on our plans for revenue upside through Sky Bet in Italy and Germany and our developing UK ecosystem,” Ashkenazi added.
The firm said it is aiming to conclude its combination with Flutter in Q2 or Q3 2020, pending various approvals.
The full financial report can be seen here.