The Stars Group Reports Second Quarter 2019 Results; Updates 2019 Full Year Guidance; Appoints New Independent Director

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The Stars Group Reports Second Quarter 2019 Results; Updates 2019 Full Year Guidance; Appoints New Independent Director

Monday 12 de August 2019 / 14:30

⏱ 2 min read

(Toronto).- The Stars Group Inc. today reported its financial results for the second quarter ended June 30, 2019, provided updated 2019 full year guidance ranges, announced the appointment of an additional independent director to its Board of Directors, and provided certain additional highlights and updates. Unless otherwise noted, all dollar ($) amounts are in U.S. dollars.

The Stars Group Reports Second Quarter 2019 Results; Updates 2019 Full Year Guidance; Appoints New Independent Director

"The second quarter underpinned the success of last year's acquisitions, particularly with the record performance of Sky Betting & Gaming and our increasing product and geographic diversification, as we continue to transform and position the business to execute on our strategy for strong, sustainable future growth," said Rafi Ashkenazi, The Stars Group's Chief Executive Officer.

"2019 has been and remains a year of integration, execution and debt reduction," said Mr. Ashkenazi. "We are committed to those key strategic priorities for the rest of the year while we also build our foundation and momentum to become a market leader in the U.S. We are confident that the actions we have taken over the last year, and are pursuing now, including to reassess our fixed cost base, put us in a strong position to deliver our mid-term growth targets from the end of 2019," concluded Mr. Ashkenazi.

MORE INFORMATION

	Three Months Ended June 30,						Six Months Ended June 30,
In thousands of U.S. Dollars (except percentages and per share amounts)	2019		2018		% Change		2019		2018		% Change
Total revenue	637,618		411,512		54.9	%	1,218,002		804,403		51.4	%
Gross profit (excluding depreciation and amortization)	463,708		327,875		41.4	%	881,456		640,502		37.6	%
Operating income	93,955		1,064		8,730.4	%	155,492		114,931		35.3	%
Net earnings (loss)	4,629		(154,824)		103.0	%	32,287		(80,463)		140.1	%
Adjusted Net Earnings ¹	137,469		131,023		4.9	%	243,069		269,785		(9.9)	%
Adjusted EBITDA ¹	236,734		168,271		40.7	%	432,089		343,293		25.9	%
Adjusted EBITDA Margin ¹	37.1	%	40.9	%	(9.3)	%	35.5	%	42.7	%	(16.9)	%
Diluted earnings (loss) per Common Share ($/Share)	0.02		(1.01)		101.7	%	0.12		(0.52)		122.6	%
Adjusted Diluted Net Earnings per Share ($/Share) ¹	0.48		0.60		(19.4)	%	0.87		1.27		(31.6)	%

Net cash inflows from operating activities	173,208		164,011		5.6	%	283,593		296,080		(4.2)	%
Free Cash Flow ¹	84,820		84,856		—	%	47,307		167,115		(71.7)	%

As at	June 30, 2019	December 31, 2018	% Change
Long-term debt - principal	5,195,398	5,666,075	(8.3)	%
Long-term debt - carrying value	5,088,915	5,446,958	(6.6)	%
Cash - operational	339,239	392,853	(13.6)	%