A poor second-quarter campaign by renowned Gaming giants, The Stars Group (TSG), has seen a brief relief due to good sales in their UK-based market. The company’s new acquisition, SkyBet, served as a buffer against the otherwise weak performance the company is experiencing on its other foreign fronts.
The Canadian-listed company, in its quarterly publication on Monday, showed a growth of 55% to finish the three months at $637.6m. It’s operating income also improved by an impressive 8,730% to finish at $94m.
Cumulatively, the company saw a net profit of $4.6m which shows a massive turnaround when compared with the $154.8m loss suffered by the outfit this period last year.
These results do not take into account the company’s recent purchase of British-based Sky Betting and Gaming (SBG). If this were to be so, TSG’s total income would drop by 2%, with adjusted revenue also falling by 1%. By all means, this is still a good performance.
UK-based SBG had a positive second-quarter run, recording total earnings of about $252.9m for the company. More than half of these earnings came from its sports-betting arm ($146.4m), the rest came from its casino operations ($92.6m).
The company’s performance, when calculated in British currency, shows an impressive 12.7% rise in overall income. With betting bids up 14.6% and active customers by 7%, the outfit successfully set a quarterly record of 2.2 million customers, ending higher than last year’s Q2.
TSG has blamed the drop in its international earnings on the clampdown by several countries on gambling agencies. It has also recently faced payment restrictions in Russia and Norway, with the Netherlands also breathing heavily down their necks.
This comes after it was forced to withdraw operations from Switzerland and Slovakia, following strict laws and sanctions on betting, further adding to its woe-list.
The company’s Australia franchise, BetEasy, recorded a 6.4% growth to finish at $64m: having an operational loss of only $4.3m.
Acquisition of Sky Betting and Gaming by TSG helped bring the company’s total revenue from betting to 36%. Online casino shares also grew to 31% from 26% last year, however, online poker fell more than 20% to end at 30% from 53% last year.
Most of the company’s revenue has continued to come from its licensed markets, making up 79% of its total earnings. The company is working to stabilize operations after taking heavy losses due to a list of factors.
NEW MARKETS AND LICENSE PLANS FOR USA, GERMANY, AND RUSSIA
On a positive note, things might be taking a further lift for the gaming giants as they have been linked to the opening of a new USA-based franchise. Coming just before the start of the NFL season, the outfit’s Fox Bet joint venture is rumored to be opened in both New Jersey and Pennsylvania.
The company will also be hoping to break into the Russian Federation as they plan to apply for a gaming license; Argentina, Germany, and Swiss markets are also being considered.