- The Stars Group has watched its stock decrease steadily from the beginning of the year.
- With Fox Bet prepared to launch next month, increased sales will continue to increase.
- Earlier this year, The Stars Group linked partnerships with Penn National Gaming and purchased Sky Betting & Gaming.
TALLAHASSEE, Fla. – The Stars Group may not be doing well on the stock market front, but the numbers outside of the market say otherwise.
The company released its second-quarter earnings reports on Monday, which decreased to 48 cents per share. Last year, at this time, the company was earning 60 cents per share.
The stock has fallen slightly over three percent since the start of 2019, well off of the S&P’s 16 percent gain.
“2019 has been and remains a year of integration, execution, and debt reduction,” said Rafi Ashkenazi, CEO for The Stars Group. “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.”
Still, the focus on becoming a market leader is prevalent due to their expanded operations in play as of late. This quarter’s increased revenue was due to the fact that The Stars Group’s June acquisition, Sky Betting & Gaming, was on board.
In their report, The Stars Group explained that sales were up nearly 55% from this last quarter compared to last year’s mark, bringing in a total $637.6 million.
The company has also released partnership details with Penn National Gaming, allowing online sports betting in nearly two dozen states, pending state laws and regulatory approvals/
This will heavily expand the operations of The Stars Group for many years and allow the company to continue their “strategy for strong, sustainable future growth.”
No partnership though even comes close to the one developed in May between The Stars Group and Fox Sports.
This 25-year arrangement will launch a sports betting app known as Fox Bet. With it, Fox Sports receives a five-percent stake in The Stars Group and has the option to take half of the company within a ten-year span.
The app will only be permitted for play in states with legal sports betting and is the first partnership for sports betting containing a media group as well as a gaming group.
With the app expected to launch before the start on NFL regular season betting, we should expect the company to see their sales, user base, and online gambling revenue continue to increase.
Michael began writing as an NBA content writer and has spent time scouting college basketball for Florida State University under Leonard Hamilton and the University of Alabama under Anthony Grant. A graduate of both schools, he covers topics focused on legal sports betting, betting odds, and casino reviews. Michael likes to golf, play basketball, hike, and kayak when not glued to the TV watching NBA games.