Financial results of The Stars Group for 2017 and 2018 predictions

The Stars Group has over the years grown into one of the largest online gaming companies not only in its homeland Canada but the world over. Through mergers, consolidations and buy offs, the company has grown in revenues and in market dominance. By the end of 2017, the company had a presence in almost every other part of the world and its shares were publicly traded both on NASDAQ and TSX. Its share price has climbed from $19 in early Sept 2017 to reach a high of $45 on Friday, May 11th. The company has close to 2,000 employees and had a promising if not a solid growth plan.

The financial results for 2017 reports that according to the audited accounts which were done by Deloitte, London, The Stars Group had a pretty good year, 2017. During the year, the company managed to fetch revenues totaling to $1.312 billion. This is a considerable improvement given that in 2016, the revenues were $1.155 bln. The expenses for 2017 were $1.057 bln which was an increase over 2016 when total expenses were $999 million. 

Net earnings before income taxes improved tremendously in 2017 to reach $286 million up from $139 million reported in 2016. A big contributor to this was gains from investments which totaled to $34 million up from a loss of $19 million made the previous year. The net earnings reported by the company was $259 million up from $135 million reported in 2016. 

2017 was even an even better year for the shareholders because the basic earnings per share were $1.77. In 2016, the figure was $0.96.

The asset base of the company dropped slightly in 2017 to settle at $5.415 bln. In as far as the cashflow side of the company goes, cash and cash equivalent doubled to reach $510 million. However, current liabilities dropped from $842 million in 2016 to $602 million in 2017 (click here for more information). 

Predictions for 2018

The Stars Group has in the past few months bought Sky Betting and Gaming as well as increase its shareholding at CrownBet of Australia. Sky Betting and Gaming is a U.K based Sportsbooks and purchasing it means that The Stars Group revenue in the UK will rise significantly. In 2016, the revenue the company got from casino and sportsbook in the U.K was $13 million and in 2017 it improved to reach $15 million. 

Sky Betting and Gaming revenue for the year ending 2016 was £374 million while that of 2017 was £516 million. The profit reported in 2017 by the company was £146 million which means that if all goes well, this figure will be added to the P&L of The Stars Group. According to CrownBet’s official website, the revenue for 2017 was AUD 172 million. Even though the figures from CrownBet are not as high as those from SBG, it is evident that 2018 will be an extraordinary year for The Stars Group.