TORONTO, March 16, 2020 /PRNewswire/ -- The Stars
Group Inc. (Nasdaq: TSG) (TSX: TSGI) today provided a general
business update, including an update on its year-to-date
performance and the recent coronavirus outbreak.
"We are pleased with the performance of our business so far this
year, which has seen continued strong underlying momentum within
our UK and Australia segments, and
a sequential improvement in our international segment from the
fourth quarter of 2019," said Rafi Ashkenazi, Chief Executive
Officer of The Stars Group. "Overall, we are so far performing
ahead of our expectations and currently expect to see strong year
over year growth in revenues for the first quarter," continued Mr.
Ashkenazi.
Revenues within The Stars Group's International segment are
slightly ahead of the prior year period on a constant currency
basis, while the UK segment has experienced continued strong
underlying trends alongside operator favorable sporting results,
leading to strong growth in revenue year over year.
"Outside of our strong performance so far this year, the recent
outbreak of the coronavirus pandemic (COVID-19) has resulted in the
cancellation or postponement of major sporting events globally. We
are closely monitoring the continued impact of the coronavirus, and
the health and safety of our employees and customers remains our
top priority, as we implement our business continuity plans and
continue to observe and comply with local mandates and guidelines
across our global offices. Our employees are working remotely to
ensure that our customers can continue to enjoy our products, and
while we currently still offer a broad range of betting options for
our customers, any sustained outbreak resulting in the further
postponement or cancellation of major sporting events could have a
material impact on our sports betting revenue in the near term,"
continued Mr. Ashkenazi.
"Notwithstanding, while it remains difficult to predict the
scope, timing and length of the current sports postponements and
cancellations, our business is online only with a global geographic
reach and a majority of revenues (62% in 2019) generated from poker
and gaming. We therefore remain confident in our ability to
continue driving revenue growth in the years ahead, despite the
inevitable disruption in the sports industry during 2020,"
concluded Mr. Ashkenazi.
As at December 31, 2019, The Stars
Group had cash and cash equivalents of $321
million, and subsequently prepaid $100 million of its USD first lien term loan in
February. In addition, The Stars Group has access to its revolving
credit facility, among other potential sources of liquidity, that
together with its current cash and cash equivalents, provides
approximately $1 billion of
liquidity.
About The Stars Group
The Stars Group is a provider of technology-based product
offerings in the global gaming and interactive entertainment
industries. Its brands have millions of registered customers
globally and collectively are leaders in online and mobile betting,
poker, casino and other gaming-related offerings. The Stars Group
owns or licenses gaming and related consumer businesses and brands,
including PokerStars, PokerStars Casino, BetStars, Full Tilt, FOX
Bet, BetEasy, Sky Bet, Sky Vegas,
Sky Casino, Sky Bingo, and Sky
Poker, as well as live poker tour and event brands, including the
PokerStars Players No Limit Hold'em Championship, European Poker
Tour, Asia Pacific Poker Tour, PokerStars Festival and PokerStars
MEGASTACK. The Stars Group is one of the world's most licensed
online gaming operators with its subsidiaries collectively holding
licenses or approvals in 22 jurisdictions throughout the world,
including in Europe, Australia, and the Americas. The Stars Group's
vision is to become the world's favorite iGaming destination and
its mission is to provide its customers with winning moments.
Cautionary Note Regarding Forward Looking Statements and
Other Information
This news release may contain forward-looking statements and
information within the meaning of applicable securities laws,
including with respect to, among other things, The Stars Group's
year-to-date performance, expectations for the first quarter of
2020, and business and operations in light of the recent
coronavirus outbreak. Forward-looking statements can, but may not
always, be identified by the use of words such as "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "intend",
"could", "might", "would", "should", "believe", and similar
references to future periods or the negatives of these words and
expressions. These statements are based on management's current
expectations and are subject to a number of risks, uncertainties,
and assumptions. There can be no assurance that actual results will
not differ materially from those expressed or implied in
forward-looking statements. Undue reliance should not be placed on
forward-looking statements. Please refer to The Stars Group's most
recent annual information form and annual and interim financial
statements and management's discussion and analysis for more
information about the factors, assumptions and risks that may apply
to The Star's Group's forward-looking statements. Each
forward-looking statement speaks only as of the date hereof, and
The Stars Group undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
For media inquiries, please contact:
Vaughan Lewis:
ir@starsgroup.com and press@starsgroup.com
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SOURCE The Stars Group