The Stars Group looks ahead with Sky Betting and Gaming acquisition
News on 17 Sep 2018
News on 17 Sep 2018
On Monday The Stars Group Inc. filed a business acquisition report with respect to its GBP 3.4 billion purchase of Sky Betting & Gaming (SBG) and provided supplemental historic financial information and additional highlights and updates for SBG.
The business acquisition report includes, among other information, SBG’s audited financial statements for its fiscal year ended June 30, 2018, as well as certain pro forma unaudited financial statements and information of The Stars Group, and high lights:
* Revenues at Sky Bet rose 30 percent to GBP 670 million in the company’s latest financial year;
* The firm’s revenue from betting rose by 37 percent to GBP 407 million in the year to June 30, driven by product enhancement and innovation helping to increase stakes and a sustained good run of sporting results;
* SBG enjoyed a successful World Cup football season with 1.3 million active unique customers on its sportsbook, generating revenue of approximately GBP 33 million across the tournament;
* Gaming revenue rose 19 percent to GBP 239 million;
* EBITDA for the year was GBP 209 million, an increase of 43 percent;
Sky Betting & Gaming chief executive Richard Flint said: “The 2018 fiscal year was another strong year for SBG, with continued product leadership and innovation. 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.
“I’m also particularly pleased with the progress we made to deliver a safer gambling environment to our customers and to continue our record of job creation and investment in Yorkshire, as well as our contribution to regional and national taxation in the UK.
“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’m excited about the opportunities this combination presents.”
The Stars Group chief executive Rafi Ashkenazi said 2018 had been a “transformative year” for the business, which has also bought Australian bookmaker Crownbet, who had themselves acquired William Hill’s Australian operation in March.
“We’ve executed on these transactions and looking forward into 2019 are now focused on integration,” he said. “We’re confident we’ll deliver on our plans to grow market share both globally and in key markets.
“SBG is a key component of this plan and we’re 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.”
