Stars Group Stars Among a Strong Showing for Private Operators in Q1Published June 23, 2020 by Lee R
The momentum that Stars found in the recent “Covid Quarter” looks like it could last all year.
The dimensions of iGaming's Covid era recovery are numerous and complex, but let's not let them be subtle.
Due Data Diligence
With the industry showing strong “COVID” Q1 performance; effective adjustment of pre-COVID and COVID short term projections, and a strong recovery forecast for iGaming in the coming years, we just need some hard data about the private operators to round out the market profile.
Private Sector Individual Performance
Nothing can be more appropriate than a sample from perhaps the largest group in iGaming: for the “COVID” Quarter Q1, the Canadian online gaming giant has announced a record revenue projection tally of some US$735 million for the three months to 31 March 2020.
Over A Quarter Up
The 27% year-on-year jump has been attributed by Stars Group to “increased customer activity across its online poker and casino product offerings largely beginning in March.”
Revenues Up Almost a Half
The already historically infamous month of March 2020 that shut down most sporting event nonetheless saw revenues at Stars Group soar some 44%.
Stars Momentum Surging
The second quarter shows little signs of slowing, with Stars Group reporting “increased activity in online poker and casino into the second quarter of 2020, with consolidated average daily revenues in the first two weeks of the quarter approximately 33% higher as compared to the first quarter of 2020.”
International Revenue Up 75%
This provided an additional 75% boost to international revenues, attributed to “increased activity in online poker and casino.”
Income to Double
More Q1 tally projections include operating income growing 133% to US$140 million, and Adjusted EBITDA expected to rise some 51% to US$291 million.
Industry-Wide Private Growth
The most telling component of these new reported findings is that Stars Groups parallels similar rises in volume among other a greater indicative sample of online gaming operators while lockdown measures were applied across most reporting jurisdictions.
Stars Group Leader Speaks
Stars Group CEO Rafi Ashkenazi confirmed April's strong momentum, and lauded strong growth in poker and gaming revenues for offsetting the cancellation of sporting events, all adding up to a positive momentum for one of iGaming's leading private operating names that looks to last:
“With these encouraging trends, a well-diversified and cash-generative business and our strong balance sheet, we believe that we remain well-positioned to navigate further headwinds related to the COVID-19 pandemic in 2020.”
The confidence of the Stars Group leader is an apt reflection on the state of most of iGaming's private operators which underscores the importance of performance Q1 data to ensure the viability of the industry post-COVID from a pure but well-rounded economical standpoint.