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

(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 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)

%