Stars Group Starts with Record Sales

Truam start into 2020

Most companies on the gaming market can only dream of a development like the one currently being seen at The Stars Group in these months. Undeterred by all factors, the group was able to achieve a new record turnover. A press release from TSG states that the group was able to increase its sales by 27 percent in the first three months of 2020 compared to the same period last year. The income would therefore amount to 735 million US dollars, the equivalent of around 680 million euros. The value from the first quarter of 2019 was exceeded by around $155 million. A surprising development, especially in times like these.

But there is also an explanation for this. The group is active in several business areas. Not only as the parent company of PokerStars, but also in the area of sports betting and casino games. The latter in particular, together with poker games, are responsible for the increase. CEO Rafi Ashkenazi explains:

"We achieved record revenue in the first quarter with 27 percent year-over-year growth and continue to see strong momentum in April. Strong growth in poker and casino gaming revenue is helping to mitigate sporting event cancellations. Based on these trends, we believe our well-diversified and cash-generating business (…) is ideally positioned to navigate further headwinds related to the Covid-19 pandemic in 2020." - Rafi Ashikenazi, CEO, The Stars Group

What happens after the crisis?

Business for TSG is currently developing extremely positively, but also in two ways. Sports betting is currently a mild to moderate source of crisis. Although the group has not provided any precise information about the individual failures, it expects that sales will be between ten and 15 million pounds less per month in Great Britain alone. The reason for this is primarily due to the numerous cancellations of major sporting events such as the European Football Championship, various dog races or horse races. The Stars Group feels this, for example, with the BetStars subsidiary. The betting provider had to reduce its portfolio enormously and is keeping operations running primarily with lower-class football leagues in Eastern Europe and betting on eSports.

What is particularly difficult to assess is the situation after the pandemic. If sports operations return to normality, this could have a huge impact on sales in the casino and poker sectors. According to the report, however, there is at least a negative influence on the behavior of consumers in the sports betting segment due to the cancellations. However, this can probably disappear quickly when you restart.

888 Holdings also presents figures

While The Stars Group is analyzing the first three months of 2020, its industry neighbor 888 Holdings has also presented its business figures. In this case, however, the business figures for 2019. There is an increase in sales, but at the same time there is also a decline in profits. According to the group, this development can be explained primarily by increased fees that are due in Great Britain, among other places. In detail, the group was able to record an increase in sales of six percent compared to the previous year. This increased sales to an impressive $560.3 million.

At the same time, the decline in profits must be mentioned. Profit before taxes has more than halved. In 2018 this was a good 108.7 million US dollars, in 2019 it was 45.3 million US dollars. The group's casino games made the largest contribution to the positive developments in sales. There were sales of 317.6 million euros in 2018. In 2019, 13 percent were added, generating a good 359.3 million euros in sales. The group suffered a decline in poker sales. 49 million euros in sales were achieved in 2018, in 2019 it was only 42.7 million euros.

Better protection for players

Although the group faces a challenging task in the coming months, the focus is currently on other areas. Player protection is particularly important at the moment, says 888 Holdings. Itai Pazner, the group's CEO, said that it was recognized that people would continue to spend more time in their own living space. The stress level is increased and there is also economic uncertainty in many places.

888’s “unwavering commitment to preventing gambling harm” is more important than ever. This protection is to be implemented, among other things, through new software. This scans the players' activities and reports them to support if there are corresponding patterns. This reacts in order to keep the possible damage for the customers to a minimum.

In addition, a new player protection campaign entitled "Safer. Better. Together." called to life. This campaign, among other things, promoted various player protection tools, which, according to the company, were then used more by customers.

Stars Group starts with record sales