As anticipated the governance of Toronto TSX-listed The Stars Group Inc, has today published its ‘business acquisition report’, disclosing the audited financial statement of its acquired Sky Betting & Gaming (Sky Bet) asset.
Updating the market, the Stars Group governance highlights the enterprise changing capacity of Sky Bet, a market leading UK online betting operator which has recorded revenues of £670 million.
With all Sky Bet divisions contributing to growth, the Stars Group’s new online betting asset declares operating profits of £87 million.
“The 2018 fiscal year was another strong year for SBG, with continued product leadership and innovation,” said Richard Flint, Chief Executive Officer of SBG.
“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,” Flint added.
“The transaction with The Stars Group will allow us to offer our best-in-class products to a truly global audience. We enter the rest of 2018 and head into 2019 as part of one of the world’s largest publicly listed online gaming companies, and I am excited about the opportunities that this combination presents,” concluded Mr. Flint.
Moving to formally complete its acquisition of Sky Bet, the Stars Group governance has revised its full-year 2018 corporate expectations.
Absorbing Sky Bet and the development of its new Australian betting division (CrownBet and William Hill Australia), Stars Group targets an adjusted FY2018 EBITDA of $755-810 million (previous forecast: $625-650 million).
Adjusting 2018 targets, the enlarged TSX enterprise targets further adjusted earnings of $485-545 million (previous forecast: $487-512 million).
In its update, the Stars Group has pre-booked capital expenditures of between $110-150 million for its full-year 2018 trading.
In previous updates, the Stars Group governance disclosed that the TSX operator had restructured its corporate accounting framework to reflect the group’s future enlarged capacity preparing to incorporate the assets of Sky Betting and Gaming.
“2018 is a transformative year for the business, with three acquisitions and related financings and other significant changes to our corporate and capital structure,” said Rafi Ashkenazi, The Stars Group’s Chief Executive Officer.
“We’ve executed on these transactions and looking forward into 2019, are now focused on integration and we are confident that we will deliver on our plans to grow market share both globally and in key markets. SBG is a key component of this plan and we are excited about its potential as the fastest growing and one of the largest online and mobile sports betting and gaming businesses in the UK, the world’s largest regulated online gaming market,” concluded Mr. Ashkenazi.