The Stars Group Announces Q3 2017 Results
Q3 saw the launch of the company’s new “Stars Rewards” program, which seeks to transform the fees and rake paid by players into a loyalty program.
The Stars Group, the Toronto based online gambling company which owns the PokerStars brand, announced its results for Q3 2017 via a statement on the company’s website. It reported total revenues of $329m, representing a 21.7% year over year increase, and an EBITDA of $155m. Net Earnings were $75m.
“Not only did we see improvement in our poker business, but our casino continues to grow with a significant active player base and our online sportsbook continues to see meaningful growth in turnover,” said The Stars Group’s CEO Rafi Ashkenazi.
Stars Rewards Program Begins
Q3 saw the launch of the company’s new “Stars Rewards” program, which seeks to transform the fees and rake paid by players into a loyalty program. The money paid to the company by players across all of its verticals is funneled into the new scheme, encouraging punters to spread their action across the company’s poker, casino, and sportsbook verticals.
“The Stars Group believes that Stars Rewards has enhanced and will continue to enhance the player experience as it introduces new ways of earning rewards that are intended to be more exciting for its recreational players and distributes the rewards based on, among other things, player contributions to the overall ecosystem,” Ashkenazi said.
Huge Debt Still Outstanding
The Stars Group continues to serve the huge debt the company incurred when it purchased the PokerStars brand while still operating as the Amaya Gaming Corporation. Despite the relatively good Q3, the company continues to carry $2.5b in long-term standing debt obligations at a huge 4.7% interest rate.
The large commitment continues to worry analysts, who remain unsure about the financial prospects of The Stars Group in a highly competitive industry. However, The Stars Group shrugged these worries off, stating that it plans to continue the same strategy in the coming months and next year.
“To build upon these achievements, we plan to focus on reinvesting in our core products and increasing our investment in marketing for the remainder of 2017 and into 2018 while continuing to explore further growth opportunities,” Ashkenazi said.