The Stars Group Inc. (TSX:TSGI)(NASDAQ:TSG) is a Toronto-based gambling company that operates online, mobile, and land-based casinos. Stars Group stock was up 1.48% towards the end of the noon hour on March 15. Shares have climbed 27% in 2018 thus far. The company released its 2017 fourth quarter and full-year results on March 14.
Leadership was proud to report that its online sportsbook “started to become a secondary customer acquisition channel”. It reported 40.3% revenue growth in the fourth quarter in its casinos and sportsbook revenues and revenues for the full year rose 45.5% to $384 million. Stars Group is in a great position to capitalize from the sweeping legalization of sports gambling throughout many states in the U.S.
Total revenues climbed 13.6% to $1.31 billion compared to $1.15 billion in 2016. Net earnings shot up 91.3% to $259 million and adjusted EBITDA rose 14.5% to $600.3 million. In the fourth quarter Stars Group acquired an interest in CrownBet Holdings, an Australian sportsbook, and subsequently entered into agreements to increase its equity interest to 80% while CrownBet will acquire William Hill Australia, another Australian online sportsbook.
For 2018 Stars Group is projecting revenues between $1.39 billion and $1.47 billion. The expected results released do not include the recent Australian acquisitions. The company also expects negative operating conditions in Russia in 2018. The stock has shot up 91% year over year and briefly dipped after releasing these earnings. Although 2018 looks positive for the company investors should be cautious as global economic turbulence could negatively affect Stars Group going forward.
