The Stars Group Inc. (TSX:TSGI)(NASDAQ:TSG) is a Toronto-based gambling company that operates online, through mobile, and in land-based casinos. Shares of Stars Group were up 12.82% at the bottom of the noon hour on April 23.
Over the weekend the company announced that it acquired Sky Betting & Gaming in a cash and stock transaction worth $4.7 billion. The acquisition will make Stars Group the largest publicly listed gambling company in the U.S. and Canada. Stars Group stock has now climbed 27.7% in 2018 so far.
The Stars Group released its 2017 fourth quarter and full-year results on March 28. In the fourth quarter revenue rose 16.1% year over year to $360.2 million and adjusted net earnings increased 4.6% to $111.9 million. For the full-year revenue climbed 13.6% to $1.31 billion and adjusted EBITDA increased 14.6% from 2016 to $600.3 million.
Casino and sportsbook revenues were up 42.2% year over year, excluding the impact of year-over-year changes in foreign exchange rates. The acquisition of Sky Betting & Gaming may open the door for Stars Group to pour into U.S. markets as legal sports gambling is making a major push in a number of states. The U.S. Supreme Court is expected to announce a New Jersey sports betting case ruling that could pave the way for full legalization south of the border.
Stars Group stock continues to be an attractive pick after this big acquisition and ahead of this crucial Supreme Court ruling.
