Poker returns to growth as Stars revenues climb 12%
Poker up 2% thanks to Stars Rewards loyalty program and shared liquidity in Europe
The Stars Group has reported a 12%cc rise in Q1 revenues, with poker growing at 2.3%cc after a long period of stagnation.
Group revenues for the three months to March 31 were $393m, with poker accounting for 63% of the total and sportsbook/casino accounting for 34%, after growing 39%cc for the quarter.
Stars said the increase in poker revenue was primarily driven by the Stars Rewards loyalty program, and the introduction of shared poker liquidity in France and Spain, although some growth was offset by exits or difficult operating conditions in markets like Australia and Colombia.
Stars said uptick in casino and sportsbook was driven by continued product improvements and the addition of revenue from the Crownbet deal.
“The Stars Group’s strong first quarter results continued our organic growth trajectory,” said Rafi Ashkenazi, group CEO.
“We are pleased with the performance of each of our verticals, poker, casino and sportsbook, which are benefiting not only from the continued success of Stars Rewards, but also from our strategy of focusing on the customer and continued improvements to our product offerings.”
“Moving forward, the exceptional foundation of our existing business will be complemented by our acquisitions of CrownBet and William Hill Australia, and expected completion of the Sky Betting & Gaming acquisition.
“These acquisitions will help diversify our revenue base, increase our exposure to regulated markets, and transform our combined sportsbook into a second customer acquisition channel.”
Regulus Partners said the results reflected the “the last quarter of ‘old Stars’”.
The analyst added: “The last period of a poker-dominated group is highly instructive, in our view, as it provides further evidence that the global poker market has potentially ‘bottomed out’ and could be able to deliver a degree of growth (mobile UX, regulatory change, emerging markets).
“In this context, poker provides a foundation for the pivot into sport rather than a defensive scramble to mitigate – and the underlying scale impact of this distinction should not be under-estimated.”