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Posted By admin on February 27, 2020

TORONTO, Feb. 27, 2020 /PRNewswire/ --The Stars Group Inc. (NASDAQ: TSG) (TSX: TSGI) today reported its financial results for the fourth quarter and year ended December 31, 2019 and provided certain additional highlights and updates. Unless otherwise noted, all dollar ($) amounts are in U.S. dollars.

"In 2019, we continued to execute on our strategy to deliver long-term sustainable growth and become the world's favorite iGaming destination. We not only began to see the full-year benefits of our transformative 2018 acquisitions, but executed on delivering a landmark media partnership in the U.S., with the launch of FOX Bet, strengthening our position in this emerging market," said Rafi Ashkenazi, The Stars Group's Chief Executive Officer. "We also focused on creating shareholder value through efficient capital allocation, prepaying over $450 million of debt during the year."

"In-line with our expectations, we exited 2019 with a strong fourth quarter with Constant Currency Revenue growth of 7% year-over-year driven primarily by the continued impressive underlying performance of our primary sports betting brands," continued Mr. Ashkenazi. "With sports betting now our largest product vertical and 81% of our revenues coming from locally regulated or taxed markets, we are well positioned for diversified growth in 2020 and beyond."

"We entered 2020 with the full $100 million run-rate of expected cost synergies from our 2018 Sky Betting & Gaming acquisition and earlier this month prepaid an additional $100 million of debt, underpinning our ability to execute on complex integrations and the highly cash-generative nature of our business model. In addition to cost synergies, we have detailed plans in place to continue driving revenue synergies and to increase investments in product and marketing, giving us confidence in continued revenue growth in the years ahead. In 2020, we plan to further enhance the global appeal of the PokerStars brand, including by launching the PokerStars Sports brand, leveraging the operational capabilities of our Sky Betting & Gaming business, and launching television advertising for PokerStars Casino," continued Mr. Ashkenazi.

"Lastly, ahead of closing our combination with Flutter, which will enhance and accelerate each company's growth strategy, we remain focused on our key strategic priorities of integration, execution, and debt reduction," concluded Mr. Ashkenazi.

Fourth Quarter and Full Year 2019 Summary

Consolidated

Quarter Ended December 31,

Year Ended December 31,

In thousands of U.S. Dollars(except percentages and per share amounts)

2019

2018

% Change

2019

2018

% Change

Total revenue

687,962

652,852

5.4 %

2,528,448

2,029,238

24.6 %

Gross profit (excluding depreciation and amortization)

497,471

486,815

2.2 %

1,835,386

1,570,074

16.9 %

Operating income

92,373

73,992

24.8 %

264,199

260,124

1.6 %

Net earnings (loss)

81,290

(38,173)

313.0 %

61,862

(108,906)

156.8 %

Adjusted Net Earnings

144,816

144,663

0.1 %

533,225

533,948

(0.1) %

Adjusted EBITDA

249,112

239,404

4.1 %

921,125

780,949

17.9 %

Adjusted EBITDA Margin

36.2 %

36.7 %

(1.3) %

36.4 %

38.5 %

(5.4) %

Diluted earnings (loss) per Common Share ($/Share)

0.28

(0.14)

297.6 %

0.22

(0.49)

144.9 %

Adjusted Diluted Net Earnings per Share ($/Share)

0.49

0.52

(5.7) %

1.86

2.19

(15.1) %

Net cash inflows from operating activities

190,149

190,537

(0.2) %

670,634

559,844

19.8 %

Free Cash Flow

98,932

82,558

19.8 %

216,390

222,950

(2.9) %

As at

December 31, 2019

December 31, 2018

Read more from the original source:

The Stars Group Reports Fourth Quarter and Full Year 2019 Results - PRNewswire

Category: Ashkenazi
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