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Be the first with the news that moves the market- Digital gambling company, The Stars Group (TSX:TSGI) has seen increased activity on its platforms, as self-isolation drives people online
- During March, the company’s online poker and casino games jumped up 44 per cent in revenue, when compared to 2019
- While sporting event cancellations have negatively impacted The Stars Group, increased online revenue has offset the damage
- However, the company did state that prolonged economic uncertainty could drive these improved figures back down
- The Stars Group (TSGI) is up 15.55 per cent, with shares trading for C$35.00 and a market cap $10.01 billion
Digital gambling company, The Stars Group (TSX:TSGI) has seen increased activity on its platforms, as self-isolation drives people online.
During March, revenue from the company’s online poker and casino games jumped 44 per cent, when compared to March 2019. This increased traffic has followed into this quarter with the first two weeks April also up 33 per cent.
That said, not all of the company’s sectors have improved in recent months. The company’s betting platforms have felt the negative impact of sporting event cancellations. Alongside fewer sporting events comes fewer opportunities for customers to place bets.
However, these reductions have largely been offset by the increased online poker and casino games.
The company did concede that these higher gambling figures could trend back down, if economic instability continues. If its customers see a significant reduction in income, the resulting reduction in online spending could push revenue back down.
Similarly, if sporting events recommence, customers may return to traditional gambling. This could also bring online poker and casino revenue back down.
Despite the unpredictable market, Rafi Ashkenazi, CEO of The Stars Group, is cautiously optimistic about the company’s coming quarters.
“We saw record revenues in the first quarter with 27 per cent year-over-year growth. We are also continuing to see strong momentum into April, with strong growth in poker and gaming revenues helping to mitigate the cancellation of sporting events.
“With these encouraging trends, a well-diversified and cash-generative business, and our strong balance sheet, we believe that we remain well-positioned to navigate further headwinds related to the COVID-19 pandemic in 2020,” he said.
The Stars Group (TSGI) is up 15.55 per cent, with shares trading for C$35.00 at 9:55am EST.
