Sports Margins, 'Disrupted Markets' Disrupt The Stars Group

The Stars Group (TSG) reported first-quarter earnings on Wednesday that fell short of analyst expectations, as the online gaming giant switched off websites in certain countries, and revenues slid after a “historically” low margin on sports bets.

TSG posted first-quarter earnings of $27.9m, or 10 cents a share, a 62.8 percent decline from $74.3m, or 36 cents per share, in the same period a year ago. Revenue was $580.4m, a 47.7 percent increase from $392.8m reported in the first quarter of 2018 when it acquired Sky Betting & Gaming and its BetEasy operations in Australia.

Adjusted EBITDA was $195m for the quarter, compared with $175m last year.

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