TORONTO, Nov. 7, 2019 /CNW/ -- The Stars Group Inc.
(Nasdaq: TSG) (TSX: TSGI) today reported its financial results for
the third quarter ended September 30,
2019 and provided certain additional highlights and updates.
Unless otherwise noted, all dollar ($) amounts are in U.S.
dollars.
"Our third quarter results were robust and in-line with our
expectations, supported by strong revenue growth in our
United Kingdom and Australia segments, which helped offset both
the ongoing disruption in certain of our lower-priority
international markets and continued foreign exchange headwinds
across the business," said Rafi Ashkenazi, The Stars Group's Chief
Executive Officer. "We have also made rapid progress in the U.S.
following our landmark FOX Sports deal in May, with the launch of
our FOX Bet products at the start of the professional football
season in New Jersey and
Pennsylvania, and some very
encouraging early signs from our FOX Sports Super 6 nationwide
free-to-play games."
"Our highly cash generative business model also enabled us to
reduce our net debt by over $100
million in the quarter and prepay yet another $100 million in October, bringing our total
prepayments since the beginning of the year to over $450 million and around $600 million since July
2018," added Mr. Ashkenazi.
"Shortly after quarter end we also announced an agreement to
combine with Flutter to create a global leader in online betting
and gaming, and we are working diligently to bring the proposed
combination to closing," continued Mr. Ashkenazi. "We remain
excited about the opportunities in front of us as the combination
will enhance and accelerate each company's growth strategy by
providing a diverse portfolio of leading brands and complementary
best-in-class products with a broad geographic reach."
"Ahead of closing, we remain highly focused on our key strategic
priorities of integration, execution and debt reduction. Not only
have we largely completed the integration of Sky Betting &
Gaming, but we currently expect to exit 2019 with a run-rate of the
full $100 million of expected cost
synergies and are beginning to execute on our plans for revenue
upside through Sky Bet in Italy
and Germany and our developing
U.K. ecosystem," concluded Mr. Ashkenazi.
Third Quarter 2019
Summary
|
Consolidated
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
In thousands of U.S.
Dollars
(except percentages and
per share amounts)
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
Total
revenue
|
|
622,484
|
|
571,983
|
|
8.8 %
|
|
1,840,486
|
|
1,376,386
|
|
33.7 %
|
Total Constant
Currency Revenue
|
|
652,788
|
|
571,983
|
|
14.1
%
|
|
|
|
|
|
|
Gross profit (excluding
depreciation and amortization)
|
|
456,459
|
|
442,757
|
|
3.1 %
|
|
1,337,915
|
|
1,083,259
|
|
23.5 %
|
Operating
income
|
|
16,334
|
|
71,201
|
|
(77.1) %
|
|
171,826
|
|
186,132
|
|
(7.7) %
|
Net (loss)
earnings
|
|
(51,715)
|
|
9,730
|
|
(631.5) %
|
|
(19,428)
|
|
(70,733)
|
|
72.5 %
|
Adjusted Net
Earnings¹
|
|
145,340
|
|
119,500
|
|
21.6 %
|
|
388,409
|
|
389,285
|
|
(0.2) %
|
Adjusted
EBITDA¹
|
|
239,924
|
|
198,252
|
|
21.0 %
|
|
672,013
|
|
541,545
|
|
24.1 %
|
Adjusted EBITDA
Margin¹
|
|
38.5 %
|
|
34.7 %
|
|
11.2 %
|
|
36.5%
|
|
39.3%
|
|
(7.2) %
|
Diluted (loss) earnings
per Common Share ($/Share)
|
|
(0.18)
|
|
0.06
|
|
(417.4) %
|
|
(0.07)
|
|
(0.34)
|
|
80.6 %
|
Adjusted Diluted Net
Earnings per Share ($/Share)¹
|
|
0.50
|
|
0.45
|
|
12.6 %
|
|
1.37
|
|
1.67
|
|
(18.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash inflows from
operating activities
|
|
196,892
|
|
73,227
|
|
168.9%
|
|
480,485
|
|
369,307
|
|
30.1 %
|
Free Cash
Flow¹
|
|
70,151
|
|
(26,723)
|
|
362.5 %
|
|
117,458
|
|
140,392
|
|
(16.3) %
|
As at
|
|
September 30,
2019
|
|
December 31,
2018
|
|
%
Change
|
Long-term debt -
principal
|
|
5,146,126
|
|
5,666,075
|
|
(9.2)%
|
Long-term debt -
carrying value
|
|
5,044,219
|
|
5,446,958
|
|
(7.4)%
|
Cash -
operational
|
|
405,776
|
|
392,853
|
|
3.3%
|
_____________________________
|
1
Non-IFRS measure. For important information on The Stars Group's
non-IFRS measures, see below under "Non-IFRS Measures" and the
tables under "Reconciliation of Non-IFRS Measures to Nearest IFRS
Measures".
|
- Revenue - Revenue for the quarter increased
primarily as a result of revenue growth within the United Kingdom and Australia segments, which were largely driven
by strong underlying trends in customer activity and revenues
across the segments, as well as a year-over-year increase in
Betting Net Win Margin. During the quarter, online sports betting
was The Stars Group's largest product vertical (35.0% versus 27.7%
in 2018), followed by online casino (31.3% versus 31.6% in 2018)
and online poker (30.9% versus 37.7% in 2018), while 77% of
consolidated revenues were derived from locally regulated or taxed
markets (72% in 2018). Additional segment specific factors
impacting revenue are described below.
- Debt and Cash - The Stars Group generated Free Cash
Flow of $70.2 million in the third
quarter of 2019, which was after, among other items, the cash
impact of certain adjustments to EBITDA set forth in the Adjusted
EBITDA reconciliation below under "Reconciliation of Non-IFRS
Measures to Nearest IFRS Measures". Free Cash Flow was also
impacted by the semi-annual interest payment of $35.0 million on the 7% Senior Notes. The Stars
Group ended the quarter with approximately $405.8 million in operational cash and
$5.0 billion of gross debt on its
balance sheet, resulting in Net Debt of $4.6
billion, a reduction of over $100
million from the second quarter of 2019. In October 2019, The Stars Group prepaid an
additional $100 million, including
accrued and unpaid interest, of its USD first lien term loan using
cash on its balance sheet.
- U.S. Update - In the eight weeks since launch, the
FOX Sports Super 6 app had been downloaded more than 820,000 times,
had more than 7.5 million total contest entries and has been ranked
in the top 20 in the games tab and in the top 10 in the sports
section in the Apple App Store. The Stars Group also launched the
real-money wagering FOX Bet products in New Jersey and Pennsylvania ahead of the start of the
professional football season, both on-time and on-budget, and has
seen encouraging week-to-week customer activity levels with the
overall performance of the products in-line with its expectations,
and is on track to reach its previously disclosed expected loss of
approximately $40 million in 2019.
Following the end of the quarter, The Stars Group successfully
launched PokerStars in Pennsylvania, the first poker product to
launch in the state, and FOX Bet announced a multi-year agreement
with the MLB to become an authorized gaming operator.
- Combination with Flutter Entertainment plc - On
October 2, 2019, The Stars Group and
Flutter announced that they entered into an arrangement agreement
providing for an all-share combination at an exchange ratio of
0.2253 and whereby immediately following completion, shareholders
of Flutter would own approximately 54.64% and shareholders of The
Stars Group would own approximately 45.36% of the share capital of
the combined group. Completion of the combination is currently
intended to occur during the second or third quarter of 2020,
subject to, among other things, shareholder, court and applicable
regulatory approvals.
- Financial Guidance; Earnings Call and
Presentation - The Stars Group currently anticipates full-year
2019 financial results to be within the guidance ranges previously
announced in its August 12, 2019
earnings release. As a result of the pending combination of The
Stars Group and Flutter, The Stars Group will not hold an earnings
conference call for the third quarter and intends to suspend its
practice of providing forward-looking financial guidance beyond its
previously announced full-year financial guidance for 2019. This
press release and an accompanying presentation will be available on
The Stars Group's website at www.starsgroup.com. For additional
information, see below under "Consolidated Financial Statements,
Management's Discussion and Analysis and Additional
Information."
- Board Observer - In January
2018, The Stars Group entered into an agreement with Mr.
Tang Hao and his affiliated entity Discovery Key Investments
Limited, which at the time collectively held approximately 17.9% of
the outstanding common shares of The Stars Group, pursuant to which
Mr. Tang appointed Mr. Melvin Zhang
as his nominee to be an observer to the Board with the right to
become a director upon the satisfaction of certain conditions.
Based on publicly available information, The Stars Group
understands that Mr. Tang and Discovery Key Investments held less
than 1% of the outstanding common shares of The Stars Group as of
September 24, 2019 and as such, Mr.
Tang no longer has a right to nominate an observer or director to
the Board and Mr. Zhang no longer serves as such observer. The
previously disclosed terms of the agreement, including as it
relates to certain restrictions on Mr. Tang's purchase of common
shares of The Stars Group, remain in effect until after the 2020
annual general meeting of shareholders.
International
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
In thousands of U.S.
Dollars (except otherwise noted)
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
Stakes
|
|
228,251
|
|
|
233,694
|
|
|
(2.3)
|
%
|
|
752,786
|
|
|
705,251
|
|
|
6.7
|
%
|
Betting Net Win
Margin (%)
|
|
7.9
|
%
|
|
9.0
|
%
|
|
(11.7)
|
%
|
|
7.5
|
%
|
|
8.1
|
%
|
|
(7.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Poker
|
|
189,766
|
|
|
212,832
|
|
|
(10.8)
|
%
|
|
595,411
|
|
|
675,688
|
|
|
(11.9)
|
%
|
Poker Constant
Currency Revenue
|
|
195,727
|
|
|
212,832
|
|
|
(8.0)
|
%
|
|
632,413
|
|
|
675,688
|
|
|
(6.4)
|
%
|
Gaming
|
|
109,338
|
|
|
107,602
|
|
|
1.6
|
%
|
|
312,546
|
|
|
316,253
|
|
|
(1.2)
|
%
|
Gaming Constant
Currency Revenue
|
|
113,375
|
|
|
107,602
|
|
|
5.4
|
%
|
|
332,545
|
|
|
316,253
|
|
|
5.2
|
%
|
Betting
|
|
18,139
|
|
|
21,030
|
|
|
(13.7)
|
%
|
|
56,472
|
|
|
57,351
|
|
|
(1.5)
|
%
|
Betting Constant
Currency Revenue
|
|
19,142
|
|
|
21,030
|
|
|
(9.0)
|
%
|
|
59,472
|
|
|
57,351
|
|
|
3.7
|
%
|
Other
|
|
8,225
|
|
|
10,982
|
|
|
(25.1)
|
%
|
|
23,524
|
|
|
35,155
|
|
|
(33.1)
|
%
|
Other Constant
Currency Revenue
|
|
9,224
|
|
|
10,982
|
|
|
(16.0)
|
%
|
|
27,523
|
|
|
35,155
|
|
|
(21.7)
|
%
|
Total
revenue
|
|
325,468
|
|
|
352,446
|
|
|
(7.7)
|
%
|
|
987,953
|
|
|
1,084,447
|
|
|
(8.9)
|
%
|
Constant
Currency Revenue
|
|
337,468
|
|
|
352,446
|
|
|
(4.2)
|
%
|
|
1,051,953
|
|
|
1,084,447
|
|
|
(3.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QAUs
(millions)
|
|
1.9
|
|
|
2.0
|
|
|
(8.5)
|
%
|
|
|
|
|
|
|
QNY
($/QAU)
|
|
170
|
|
|
167
|
|
|
1.6
|
%
|
|
|
|
|
|
|
Constant Currency
Revenue QNY
|
|
176
|
|
|
167
|
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(excluding depreciation and amortization)
|
|
256,297
|
|
|
287,522
|
|
|
(10.9)
|
%
|
|
765,650
|
|
|
873,444
|
|
|
(12.3)
|
%
|
Gross profit margin
(%)
|
|
78.7
|
%
|
|
81.6
|
%
|
|
(3.5)
|
%
|
|
77.5
|
%
|
|
80.5
|
%
|
|
(3.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
118,843
|
|
|
112,837
|
|
|
5.3
|
%
|
|
325,077
|
|
|
324,503
|
|
|
0.2
|
%
|
Sales and
marketing¹
|
|
41,146
|
|
|
31,912
|
|
|
28.9
|
%
|
|
118,291
|
|
|
119,136
|
|
|
(0.7)
|
%
|
Research and
development
|
|
8,148
|
|
|
6,808
|
|
|
19.7
|
%
|
|
24,037
|
|
|
22,985
|
|
|
4.6
|
%
|
Operating
income
|
|
88,160
|
|
|
135,965
|
|
|
(35.2)
|
%
|
|
298,245
|
|
|
406,820
|
|
|
(26.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
|
167,222
|
|
|
184,292
|
|
|
(9.3)
|
%
|
|
469,785
|
|
|
535,166
|
|
|
(12.2)
|
%
|
Adjusted EBITDA
Margin (%)2
|
|
51.4
|
%
|
|
52.3
|
%
|
|
(1.7)
|
%
|
|
47.6
|
%
|
|
49.3
|
%
|
|
(3.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Deposits
(millions)
|
|
310
|
|
|
335
|
|
|
(7.6)
|
%
|
|
|
|
|
|
|
_____________________________
1 Sales and marketing includes $1.1 million and $3.8
million for the three and nine months ended September 30, 2019, respectively, that the
Corporation excluded from its consolidated results as it related to
certain non-gaming related transactions with the United Kingdom segment.
2 Non-IFRS measure. For important information on
The Stars Group's non-IFRS measures, see below under "Non-IFRS
Measures" and the tables under "Reconciliation of Non-IFRS Measures
to Nearest IFRS Measures".
- Revenue - Revenue decreased year-over-year, primarily as
a result of adverse foreign exchange fluctuations and continued
disruptions and regulatory headwinds in certain markets due to
reduced deposits by customers as a result of local restrictions on
some methods of payment processing and on certain methods of
downloading The Stars Group's products, particularly related to
casino and poker. In markets that have been impacted by such
disruption, which represent lower-priority markets, revenues were
32% lower year-over-year, slightly worse than the trend in each of
the first two quarters of the year, with improvements in some
markets primarily offset by the closure of PokerStars in
Switzerland in July 2019. These markets now represent 14% of
revenue for the International segment, from 20% in the prior year
period. In the rest of the world, Constant Currency Revenue growth
was 3% year-over-year, consistent with the trends in the first half
of the year, with strong performance in Italy, where Constant Currency Revenue grew 9%
year-over-year despite necessary changes to meet obligations of the
advertising restrictions beginning in July.
- Poker - Revenue for the quarter decreased
year-over-year, with Constant Currency Revenue 8.0% lower than the
prior year period, primarily as a result of the same factors noted
above. Underlying trends in the third quarter were similar to those
in the first half of the year, with the primary negative impact
being the closure of PokerStars in Switzerland in July
2019, where The Stars Group is working with regulators and
its local partner to operate in a newly regulated environment in
due course. The Stars Group believes that its new product pipeline
and marketing plans for the fourth quarter and into 2020 supports
its current expectations for a return to Constant Currency Revenue
growth in 2020. Poker remains an important driver of cost-effective
customer acquisition, leveraging the awareness and trust of the
PokerStars brand to create a large and low-cost customer
acquisition channel, supporting our ability to drive revenue growth
through cross-selling to the International segments other product
offerings. PokerStars also held the World Championship of Online
Poker (WCOOP) during the quarter, which paid out a WCOOP record
$105 million in prizes over the
20-day tournament series.
- Gaming - Revenue for the quarter increased
year-over-year, primarily as a result of organic growth in most
markets, which continues to be driven by the roll-out of new casino
games and innovative content, as well as ongoing improvements in
cross-selling rates from poker to casino games. Constant Currency
Revenue growth in The Stars Group's rest of the world markets (all
markets excluding disrupted markets) was 24%. The growth in gaming
revenue was partially offset by the cessation of operations in
certain markets since the third quarter of 2018, as well as similar
restrictions on some methods of payment processing and adverse
foreign exchange fluctuations as described above.
- Betting - Revenue for the quarter decreased
year-over-year as a result of adverse foreign exchange fluctuations
and reduced levels of Stakes, driven in part by the cessation of
operations in certain markets as well as the positive impact of the
FIFA World Cup in the prior year period. The relaunch of Sky Bet in
Italy and Germany produced encouraging results with
Stakes increasing 22% year-over-year on a local currency
basis.
- Operational excellence - The quarter saw an
underlying improvement in operations within the International
segment, primarily driven by the implementation of an operational
excellence program to optimize the cost base, including a reduction
in headcount and the relocation and re-purposing of certain roles,
which helped to offset some of the impact of the disrupted markets.
For additional information, see below under "Reconciliation of
Non-IFRS Measures to Nearest IFRS Measures".
- Customers – QAUs decreased year-over-year, primarily due
to reduced activity in certain markets and the closure of certain
markets, each as noted above.
United
Kingdom
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
In thousands of U.S.
Dollars (except otherwise noted)
|
|
2019
|
|
2018
¹
|
|
%
Change
|
|
2019
|
|
2018
¹
|
|
%
Change
|
Stakes
|
|
1,376,179
|
|
|
1,221,854
|
|
|
12.6
|
%
|
|
4,388,530
|
|
|
1,221,854
|
|
|
259.2
|
%
|
Betting Net Win
Margin (%)
|
|
9.4
|
%
|
|
7.0
|
%
|
|
35.5
|
%
|
|
8.0
|
%
|
|
7.0
|
%
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Poker
|
|
2,851
|
|
|
2,884
|
|
|
(1.1)
|
%
|
|
8,855
|
|
|
2,884
|
|
|
207.0
|
%
|
Poker Constant
Currency Revenue
|
|
3,014
|
|
|
2,884
|
|
|
4.5
|
%
|
|
|
|
|
|
|
Gaming
|
|
85,219
|
|
|
73,318
|
|
|
16.2
|
%
|
|
268,113
|
|
|
73,318
|
|
|
265.7
|
%
|
Gaming Constant
Currency Revenue
|
|
90,079
|
|
|
73,318
|
|
|
22.9
|
%
|
|
|
|
|
|
|
Betting
|
|
130,020
|
|
|
85,189
|
|
|
52.6
|
%
|
|
350,960
|
|
|
85,189
|
|
|
312.0
|
%
|
Betting Constant
Currency Revenue
|
|
137,503
|
|
|
85,189
|
|
|
61.4
|
%
|
|
|
|
|
|
|
Other2
|
|
8,869
|
|
|
6,989
|
|
|
26.9
|
%
|
|
31,004
|
|
|
6,989
|
|
|
343.6
|
%
|
Other Constant
Currency Revenue
|
|
8,847
|
|
|
6,989
|
|
|
26.6
|
%
|
|
|
|
|
|
|
Total
revenue
|
|
226,959
|
|
|
168,380
|
|
|
34.8
|
%
|
|
658,932
|
|
|
168,380
|
|
|
291.3
|
%
|
Constant
Currency Revenue
|
|
239,443
|
|
|
168,380
|
|
|
42.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QAUs
(millions)
|
|
2.0
|
|
|
2.0
|
|
|
(1.1)
|
%
|
|
|
|
|
|
|
QNY
($/QAU)
|
|
112
|
|
|
96
|
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(excluding depreciation and amortization)
|
|
156,885
|
|
|
121,226
|
|
|
29.4
|
%
|
|
456,031
|
|
|
121,226
|
|
|
276.2
|
%
|
Gross profit margin
(%)
|
|
69.1
|
%
|
|
72.0
|
%
|
|
(4.0)
|
%
|
|
69.2
|
%
|
|
72.0
|
%
|
|
(3.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
103,634
|
|
|
104,487
|
|
|
(0.8)
|
%
|
|
320,709
|
|
|
104,487
|
|
|
206.9
|
%
|
Sales and
marketing
|
|
34,327
|
|
|
40,224
|
|
|
(14.7)
|
%
|
|
99,638
|
|
|
40,224
|
|
|
147.7
|
%
|
Research and
development
|
|
3,843
|
|
|
4,940
|
|
|
(22.2)
|
%
|
|
11,714
|
|
|
4,940
|
|
|
137.1
|
%
|
Operating income
(loss)
|
|
15,081
|
|
|
(28,425)
|
|
|
153.1
|
%
|
|
23,970
|
|
|
(28,425)
|
|
|
184.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA3
|
|
77,017
|
|
|
28,153
|
|
|
173.6
|
%
|
|
220,289
|
|
|
28,153
|
|
|
682.5
|
%
|
Adjusted EBITDA
Margin (%)3
|
|
33.9
|
%
|
|
16.7
|
%
|
|
103.0
|
%
|
|
33.4
|
%
|
|
16.7
|
%
|
|
99.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________
1 The Stars Group acquired Sky Betting &
Gaming on July 10, 2018.
2 Other revenue includes $1.1
million and $3.8 million for
the three and nine months ended September
30, 2019, respectively, that the Corporation excluded from
its consolidated results as it related to certain non-gaming
related transactions with the International segment.
3 Non-IFRS measure. For important information on
The Stars Group's non-IFRS measures, see below under "Non-IFRS
Measures" and the tables under "Reconciliation of Non-IFRS Measures
to Nearest IFRS Measures".
- Revenue - Revenue for the quarter increased
significantly year-over-year, primarily due to a combination of
factors including strong operational momentum across the
United Kingdom segment's betting
and gaming products and the timing of the acquisition of Sky
Betting & Gaming on July 10,
2018. On a constant currency and proforma basis (assuming
The Stars Group completed the Sky Betting & Gaming acquisition
on July 1, 2018), revenue would have
grown approximately 21% year-over-year. This revenue growth was
partially offset by negative foreign exchange fluctuations and the
benefit of the FIFA World Cup in the prior year period.
- Betting - Revenue increased year-over-year as a
result of increased Stakes and an increase in Betting Net Win
Margin. The increase in Stakes was primarily the result of
continued improvements to the segment's products and promotions
which drove growth in customer engagement and retention. The
Betting Net Win Margin was significantly higher year-over-year at
9.4%, but was broadly in-line with the historical long-term average
of approximately 9%.
- Gaming - Revenue increased year-over-year,
benefiting from continued improvements in cross-sell of customers
to and from the United Kingdom's
gaming and betting products, as well as the continued roll-out of
new and innovative content. In particular, Sky Bingo Arcade and
Sky Lotto, which were both launched
during the second quarter, contributed to continued growth during
the period.
- Customers - QAUs were broadly stable year-over-year, and
benefited in the quarter from the positive impact of continued
improvements in products and promotions, and in particular the
successful promotional activity around the start of the English
Premier League season. This was primarily offset with the prior
year period benefiting substantially from customer activity during
the FIFA World Cup.
Australia
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
In thousands of U.S.
Dollars (except otherwise noted)
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
¹
|
|
%
Change
|
Stakes
|
|
727,464
|
|
|
825,438
|
|
|
(11.9)
|
%
|
|
2,224,102
|
|
|
1,693,164
|
|
|
31.4
|
%
|
Betting Net Win
Margin (%)
|
|
9.6
|
%
|
|
6.3
|
%
|
|
52.3
|
%
|
|
8.7
|
%
|
|
7.4
|
%
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Betting
|
|
70,001
|
|
|
52,157
|
|
|
34.2
|
%
|
|
194,347
|
|
|
124,559
|
|
|
56
|
%
|
Betting Constant
Currency Revenue
|
|
74,644
|
|
|
52,157
|
|
|
43.1
|
%
|
|
|
|
|
|
|
Other
|
|
1,156
|
|
|
—
|
|
|
—
|
%
|
|
3,054
|
|
|
—
|
|
|
—
|
%
|
Other Constant
Currency Revenue
|
|
1,233
|
|
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
Total
revenue
|
|
71,157
|
|
|
52,157
|
|
|
36.4
|
%
|
|
197,401
|
|
|
124,559
|
|
|
58.5
|
%
|
Constant
Currency Revenue
|
|
75,877
|
|
|
52,157
|
|
|
45.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QAUs
(millions)
|
|
0.21
|
|
|
0.27
|
|
|
(20.5)
|
%
|
|
|
|
|
|
|
QNY
($/QAU)
|
|
326
|
|
|
193
|
|
|
68.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(excluding depreciation and amortization)
|
|
44,377
|
|
|
35,154
|
|
|
26.2
|
%
|
|
120,034
|
|
|
89,589
|
|
|
34
|
%
|
Gross profit margin
(%)
|
|
62.4
|
%
|
|
67.4
|
%
|
|
(7.5)
|
%
|
|
60.8
|
%
|
|
71.9
|
%
|
|
(15.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
25,042
|
|
|
39,954
|
|
|
(37.3)
|
%
|
|
79,945
|
|
|
84,561
|
|
|
(5.5)
|
%
|
Sales and
marketing
|
|
16,830
|
|
|
21,050
|
|
|
(20.0)
|
%
|
|
40,898
|
|
|
37,523
|
|
|
9
|
%
|
Research and
development
|
|
1,267
|
|
|
114
|
|
|
1,011.40
|
%
|
|
3,416
|
|
|
1,098
|
|
|
211.1
|
%
|
Operating income
(loss)
|
|
1,238
|
|
|
(25,964)
|
|
|
104.8
|
%
|
|
(4,225)
|
|
|
(33,593)
|
|
|
87.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
|
8,655
|
|
|
(4,755)
|
|
|
282
|
%
|
|
24,477
|
|
|
7,888
|
|
|
210.3
|
%
|
Adjusted EBITDA
Margin (%)2
|
|
12.2
|
%
|
|
(9.1)
|
%
|
|
233.2
|
%
|
|
12.4
|
%
|
|
6.3
|
%
|
|
96.5
|
%
|
_____________________________
1 The Stars Group acquired 62% of BetEasy on
February 27, 2018 and a further 18%
on April 24, 2018, with BetEasy
acquiring William Hill Australia on the same day.
2 Non-IFRS measure. For important information on The
Stars Group's non-IFRS measures, see below under "Non-IFRS
Measures" and the tables under "Reconciliation of Non-IFRS Measures
to Nearest IFRS Measures".
- Revenue - Revenue for the quarter increased
year-over-year, primarily as a result of a higher Betting Net Win
Margin, partially offset by a decrease in Stakes and adverse
foreign exchange fluctuations. The decrease in Stakes was primarily
a result of the prior year period benefiting from the FIFA World
Cup and above average promotional activity as part of the migration
of such customers of the former William Hill Australia business to
the BetEasy platform, and the launch of the BetEasy brand, together
with an increased focus on high-value, recreational customers
through the continued roll-out of MyRewards allowing for targeted,
personalized promotions and an optimization of the customer base.
The Betting Net Win Margin of 9.6% was above the long-term average
of 8.5%, but was significantly higher year-over year, primarily as
a result of the increased promotional activity noted above,
together with operator-unfavorable sporting results in the prior
year period.
- Customers - QAUs decreased year-over-year, primarily as
a result of the migration of customers onto the BetEasy platform
which positively impacted the prior year period, together with a
continued focus on high-value, recreational customers as noted
above.
For additional information regarding The Stars Group's reporting
segments and major lines of operations, please see The Stars
Group's interim condensed consolidated financial statements for the
three and nine months ended September 30,
2019 (the "Q3 2019 Financial Statements"), including note 5
therein, and management's discussion and analysis thereon (the "Q3
2019 MD&A").
Consolidated Financial Statements, Management's Discussion
and Analysis and Additional Information
The Stars Group's Q3 2019 Financial Statements, Q3 2019
MD&A, this press release and related presentation, and
additional information relating to The Stars Group and its
business, can be found on or through SEDAR at www.sedar.com, Edgar
at www.sec.gov and The Stars Group's website at www.starsgroup.com,
as applicable. The financial information presented in this news
releases was derived from the Q3 2019 Financial Statements.
In addition to press releases, securities filings and public
conference calls and webcasts, as applicable, The Stars Group
intends to use its investor relations page on its website as a
means of disclosing material information to its investors and
others and for complying with its disclosure obligations under
applicable securities laws. Accordingly, investors and others
should monitor the website in addition to following The Stars
Group's press releases, securities filings and public conference
calls and webcasts, as applicable. This list may be updated from
time to time.
Reconciliation of Non-IFRS Measures to Nearest IFRS
Measures
The tables below present reconciliations of Adjusted EBITDA,
Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share
to net (loss) earnings, which is the nearest IFRS measure.
For additional information, see "Reconciliations" in the Q3 2019
MD&A.
|
|
Three Months Ended
September 30, 2019
|
In thousands of U.S.
Dollars
|
|
International
|
|
United
Kingdom
|
|
Australia
|
|
Corporate
|
|
Consolidated
|
Net earnings
(loss)
|
|
88,160
|
|
|
15,081
|
|
|
1,238
|
|
|
(156,194)
|
|
|
(51,715)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,785)
|
|
|
(9,785)
|
|
Net financing
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58,264)
|
|
|
(58,264)
|
|
Net loss from
associates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
88,160
|
|
|
15,081
|
|
|
1,238
|
|
|
(88,145)
|
|
|
16,334
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
38,315
|
|
|
58,287
|
|
|
8,777
|
|
|
211
|
|
|
105,590
|
|
Add (deduct) the impact
of the following:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs and deal contingent forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,139
|
|
|
10,139
|
|
Stock-based
compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,049
|
|
|
6,049
|
|
Gains from
investments
|
|
(185)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(185)
|
|
Impairment of
intangible assets
|
|
1
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
135
|
|
Other costs
(income)
|
|
40,931
|
|
|
3,515
|
|
|
(1,360)
|
|
|
58,776
|
|
|
101,862
|
|
Total adjusting
items
|
|
40,747
|
|
|
3,649
|
|
|
(1,360)
|
|
|
74,964
|
|
|
118,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
167,222
|
|
|
77,017
|
|
|
8,655
|
|
|
(12,970)
|
|
|
239,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
In thousands of U.S.
Dollars
|
|
International
|
|
United
Kingdom
|
|
Australia
|
|
Corporate
|
|
Consolidated
|
Net earnings
(loss)
|
|
298,245
|
|
|
23,970
|
|
|
(4,225)
|
|
|
(337,418)
|
|
|
(19,428)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,768)
|
|
|
(17,768)
|
|
Net financing
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173,486)
|
|
|
(173,486)
|
|
Net loss from
associates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
298,245
|
|
|
23,970
|
|
|
(4,225)
|
|
|
(146,164)
|
|
|
171,826
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
115,671
|
|
|
180,104
|
|
|
27,623
|
|
|
567
|
|
|
323,965
|
|
Add (deduct) the impact
of the following:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs and deal contingent forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,139
|
|
|
10,139
|
|
Stock-based
compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,511
|
|
|
13,511
|
|
(Gains) losses from
investments
|
|
(715)
|
|
|
44
|
|
|
—
|
|
|
93
|
|
|
(578)
|
|
Impairment of
intangible assets
|
|
12
|
|
|
2,775
|
|
|
—
|
|
|
—
|
|
|
2,787
|
|
Other
costs
|
|
56,572
|
|
|
13,396
|
|
|
1,079
|
|
|
79,316
|
|
|
150,363
|
|
Total adjusting
items
|
|
55,869
|
|
|
16,215
|
|
|
1,079
|
|
|
103,059
|
|
|
176,222
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
469,785
|
|
|
220,289
|
|
|
24,477
|
|
|
(42,538)
|
|
|
672,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2018
|
In thousands of U.S.
Dollars
|
|
International
|
|
United
Kingdom
|
|
Australia
|
|
Corporate
|
|
Consolidated
|
Net earnings
(loss)
|
|
135,965
|
|
|
(28,425)
|
|
|
(25,964)
|
|
|
(71,846)
|
|
|
9,730
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
recovery
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,189
|
|
|
13,189
|
|
Net financing
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74,660)
|
|
|
(74,660)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
135,965
|
|
|
(28,425)
|
|
|
(25,964)
|
|
|
(10,375)
|
|
|
71,201
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
34,398
|
|
|
53,642
|
|
|
10,855
|
|
|
43
|
|
|
98,938
|
|
Add (deduct) the impact
of the following:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs and deal contingent forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,667
|
|
|
1,667
|
|
Stock-based
compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,154
|
|
|
3,154
|
|
Loss from investments
and associates
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
Impairment of
intangible assets
|
|
3,869
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,869
|
|
Other costs
(income)
|
|
9,937
|
|
|
2,936
|
|
|
10,354
|
|
|
(3,927)
|
|
|
19,300
|
|
Total adjusting
items
|
|
13,929
|
|
|
2,936
|
|
|
10,354
|
|
|
894
|
|
|
28,113
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
184,292
|
|
|
28,153
|
|
|
(4,755)
|
|
|
(9,438)
|
|
|
198,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2018
|
In thousands of U.S.
Dollars
|
|
International
|
|
United
Kingdom
|
|
Australia
|
|
Corporate
|
|
Consolidated
|
Net earnings
(loss)
|
|
407,888
|
|
|
(28,425)
|
|
|
(33,593)
|
|
|
(416,603)
|
|
|
(70,733)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
recovery
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,438
|
|
|
15,438
|
|
Net financing
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(273,371)
|
|
|
(273,371)
|
|
Net earnings from
associates
|
|
1,068
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,068
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
406,820
|
|
|
(28,425)
|
|
|
(33,593)
|
|
|
(158,670)
|
|
|
186,132
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
108,354
|
|
|
53,642
|
|
|
20,723
|
|
|
62
|
|
|
182,781
|
|
Add the impact of the
following:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs and deal contingent forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112,485
|
|
|
112,485
|
|
Stock-based
compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,802
|
|
|
8,802
|
|
Loss from investments
and associates
|
|
370
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
370
|
|
Impairment of
intangible assets
|
|
4,943
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,943
|
|
Other
costs
|
|
14,679
|
|
|
2,936
|
|
|
20,758
|
|
|
7,659
|
|
|
46,032
|
|
Total adjusting
items
|
|
19,992
|
|
|
2,936
|
|
|
20,758
|
|
|
128,946
|
|
|
172,632
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
535,166
|
|
|
28,153
|
|
|
7,888
|
|
|
(29,662)
|
|
|
541,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
In thousands of U.S.
Dollars (except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net (loss)
earnings
|
|
(51,715)
|
|
|
9,730
|
|
|
(19,428)
|
|
|
(70,733)
|
|
Income tax recovery
(expense)
|
|
9,785
|
|
|
(13,189)
|
|
|
17,768
|
|
|
(15,438)
|
|
Loss before income
taxes
|
|
(41,930)
|
|
|
(3,459)
|
|
|
(1,660)
|
|
|
(86,171)
|
|
Add (deduct) the impact
of the following:
|
|
|
|
|
|
|
|
|
Interest
accretion
|
|
5,574
|
|
|
8,984
|
|
|
27,931
|
|
|
30,064
|
|
Loss on debt
extinguishment
|
|
—
|
|
|
18,521
|
|
|
—
|
|
|
143,497
|
|
Re-measurement of
contingent consideration
|
|
—
|
|
|
5,056
|
|
|
(12,713)
|
|
|
8,753
|
|
Re-measurement of
embedded derivative
|
|
(15,400)
|
|
|
(11,300)
|
|
|
(50,200)
|
|
|
(11,300)
|
|
Unrealized foreign
exchange loss on financial instruments associated with financing
activities
|
|
5,811
|
|
|
300
|
|
|
7,151
|
|
|
300
|
|
Ineffectiveness on
cash flow hedges
|
|
2,684
|
|
|
(11,949)
|
|
|
10,248
|
|
|
(11,949)
|
|
Acquisition-related
costs and deal contingent forwards
|
|
10,139
|
|
|
1,667
|
|
|
10,139
|
|
|
112,485
|
|
Amortization of
acquisition intangibles
|
|
84,136
|
|
|
92,107
|
|
|
261,880
|
|
|
154,965
|
|
Stock-based
compensation
|
|
6,049
|
|
|
3,154
|
|
|
13,511
|
|
|
8,802
|
|
(Gain) loss from
investments and earnings from associates
|
|
(185)
|
|
|
123
|
|
|
(578)
|
|
|
(698)
|
|
Impairment of
intangible assets
|
|
135
|
|
|
3,869
|
|
|
2,787
|
|
|
4,943
|
|
Other
costs
|
|
101,862
|
|
|
19,300
|
|
|
150,363
|
|
|
46,032
|
|
Adjust for income tax
expense
|
|
(13,535)
|
|
|
(6,873)
|
|
|
(30,450)
|
|
|
(10,438)
|
|
Adjusted Net
Earnings
|
|
145,340
|
|
|
119,500
|
|
|
388,409
|
|
|
389,285
|
|
Adjusted Net
Earnings attributable to
|
|
|
|
|
|
|
|
|
Shareholders of The
Stars Group Inc.
|
|
144,769
|
|
|
119,961
|
|
|
386,179
|
|
|
389,430
|
|
Non-controlling
interest
|
|
571
|
|
|
(461)
|
|
|
2,230
|
|
|
(145)
|
|
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
288,759,876
|
|
|
269,526,633
|
|
|
281,853,401
|
|
|
232,640,294
|
|
Adjusted Diluted Net
Earnings per Share
|
|
0.50
|
|
|
0.45
|
|
|
1.37
|
|
|
1.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below presents certain items comprising "Other costs"
in the reconciliation tables above:
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
In thousands of U.S.
Dollars
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Integration costs of
acquired businesses
|
|
4,275
|
|
|
17,088
|
|
|
17,197
|
|
|
28,555
|
|
Financial (income)
expenses
|
|
(524)
|
|
|
(5,248)
|
|
|
1,589
|
|
|
(3,199)
|
|
Restructuring
expenses
|
|
22,304
|
|
|
4,486
|
|
|
28,533
|
|
|
6,544
|
|
AMF, foreign payments
and other investigation and related professional fees
|
|
6,803
|
|
|
(888)
|
|
|
16,023
|
|
|
3,771
|
|
Lobbying (US and
Non-US) and other legal expenses
|
|
5,579
|
|
|
4,260
|
|
|
12,141
|
|
|
9,918
|
|
Professional fees in
connection with non-core activities
|
|
8,407
|
|
|
1,423
|
|
|
18,870
|
|
|
1,976
|
|
Retention
bonuses
|
|
—
|
|
|
25
|
|
|
—
|
|
|
259
|
|
Loss on disposal of
assets
|
|
393
|
|
|
—
|
|
|
—
|
|
|
41
|
|
Austria gaming
duty
|
|
—
|
|
|
(3,679)
|
|
|
—
|
|
|
(3,679)
|
|
Acquisition of market
access rights
|
|
22,500
|
|
|
—
|
|
|
22,500
|
|
|
—
|
|
Legal
settlement
|
|
32,500
|
|
|
—
|
|
|
32,500
|
|
|
—
|
|
Other
|
|
(375)
|
|
|
1,833
|
|
|
1,010
|
|
|
1,846
|
|
Other
costs
|
|
101,862
|
|
|
19,300
|
|
|
150,363
|
|
|
46,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For additional information and descriptions of certain "Other
costs", see the Q3 2019 MD&A, including under the heading
"Reconciliations".
The table below presents a reconciliation of Free Cash Flow to
net cash flows from operating activities, which is the nearest IFRS
measure:
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
In thousands of U.S.
Dollars
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net cash inflows from
operating activities
|
|
196,892
|
|
|
73,227
|
|
|
480,485
|
|
|
369,307
|
|
Customer deposit
liability movement
|
|
3,108
|
|
|
1,552
|
|
|
762
|
|
|
(12,349)
|
|
|
|
200,000
|
|
|
74,779
|
|
|
481,247
|
|
|
356,958
|
|
Capital
expenditure:
|
|
|
|
|
|
|
|
|
Additions to deferred
development costs
|
|
(20,183)
|
|
|
(16,496)
|
|
|
(59,216)
|
|
|
(32,686)
|
|
Additions to property
and equipment
|
|
(7,673)
|
|
|
(9,530)
|
|
|
(15,851)
|
|
|
(18,791)
|
|
Additions to
intangible assets
|
|
(2,816)
|
|
|
(4,426)
|
|
|
(21,321)
|
|
|
(16,268)
|
|
Interest
paid
|
|
(86,028)
|
|
|
(62,113)
|
|
|
(228,313)
|
|
|
(128,391)
|
|
Debt servicing cash
flows (excluding voluntary prepayments)
|
|
(13,149)
|
|
|
(8,937)
|
|
|
(39,088)
|
|
|
(20,430)
|
|
Free Cash
Flow
|
|
70,151
|
|
|
(26,723)
|
|
|
117,458
|
|
|
140,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below presents a reconciliation of Net Debt:
|
|
|
In thousands of U.S.
Dollars
|
|
As at September
30, 2019
|
Current portion of
long-term debt
|
|
35,750
|
|
Long-term
debt
|
|
5,008,469
|
|
Less: Cash and cash
equivalents - operational
|
|
405,776
|
|
Net
Debt
|
|
4,638,443
|
|
|
|
|
|
|
For additional information about The Stars Group's non-IFRS
measures, see the Q3 2019 MD&A, including under the headings
"Management's Discussion and Analysis", "Non-IFRS Measures, Key
Metrics and Other Data", "Segment Results of Operations" and
"Reconciliations".
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, Sky Poker,
and Oddschecker, as well as live poker tour and events brands,
including the PokerStars Players No Limit Hold'em Championship,
European Poker Tour, PokerStars Caribbean Adventure, Latin American
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 21 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
This news release contains forward-looking statements and
information within the meaning of the Private Securities Litigation
Reform Act of 1995 and applicable securities laws, including,
without limitation, certain financial and operational expectations
and projections, such as certain future operational and growth
plans and strategies, and certain financial items relating to the
full year 2019 results. Forward-looking statements and information
can, but may not always, be identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "expect",
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "would", "should", "believe",
"objective", "ongoing", "imply", "assumes", "goal", "likely" and
similar references to future periods or the negatives of these
words or variations or synonyms of these words or comparable
terminology and similar expressions. These statements and
information, other than statements of historical fact, are based on
management's current expectations and are subject to a number of
risks, uncertainties, and assumptions, including market and
economic conditions, business prospects or opportunities, future
plans and strategies, projections, technological developments,
anticipated events and trends and regulatory changes that affect
The Stars Group and its customers, partners, suppliers and
industries in which it operates or may operate in the future.
Although The Stars Group and management believe the expectations
reflected in such forward-looking statements and information are
reasonable and are based on reasonable assumptions and estimates as
of the date hereof, there can be no assurance that these
assumptions or estimates are accurate or that any of these
expectations will prove accurate. Forward-looking statements are
inherently subject to significant business, regulatory, economic
and competitive risks, uncertainties and contingencies that could
cause actual events to differ materially from those expressed or
implied in such statements. Specific risks and uncertainties
include, but are not limited to: customer and operator preferences
and changes in the economy; reputation and brand growth;
competition and the competitive environment within addressable
markets and industries; macroeconomic conditions and trends in the
gaming and betting industry; ability to predict fluctuations in
financial results from quarter to quarter; ability to mitigate tax
risks and adverse tax consequences, including, without limitation,
changes in tax laws or administrative policies relating to tax and
the imposition of new or additional taxes, such as value-added and
point of consumption taxes, and gaming duties; The Stars Group's
substantial indebtedness requires that it use a significant portion
of its cash flow to make debt service payments; impact of inability
to complete future or announced acquisitions, dispositions, mergers
or other business combinations, such as the potential combination
with Flutter, or to integrate businesses successfully, including,
without limitation, Sky Betting & Gaming and BetEasy; the risk
that the potential combination with Flutter may not complete on the
anticipated terms and timing, if at all, or a condition to
completing the potential combination may not be satisfied; the
ability to obtain the required regulatory approvals with respect to
the potential combination with Flutter, or the potential imposition
by applicable regulators of conditions to obtain such regulatory
approvals that adversely affect the anticipated benefits from the
potential combination or cause The Stars Group or Flutter to
abandon the same; potential litigation relating to the potential
combination with Flutter that could be instituted against The Stars
Group and/or its directors; contractual relationships of The Stars
Group with FOX Corporation and Sky plc and/or their respective
subsidiaries; an ability to realize all or any of The Stars Group's
estimated synergies and cost savings in connection with
acquisitions, including, without limitation, the acquisition of Sky
Betting & Gaming and the Australian acquisitions; ability to
mitigate foreign exchange and currency risks; legal and regulatory
requirements; potential changes to the gaming regulatory framework,
including without limitation, those that may impact The Stars
Group's ability to access and operate in certain jurisdictions,
whether directly or through arrangements with locally based
operators; the heavily regulated industry in which The Stars Group
carries on its business; ability to obtain, maintain and comply
with all applicable and required licenses, permits and
certifications to offer, operate and market its product offerings,
including difficulties or delays in the same; social responsibility
concerns and public opinion; protection of proprietary technology
and intellectual property rights; intellectual property
infringement or invalidity claims; and systems, networks,
telecommunications or service disruptions or failures or
cyber-attacks and failure to protect customer data, including
personal and financial information. These factors are not
intended to represent a complete list of the factors that could
affect The Stars Group; however, these factors as well as other
applicable risks and uncertainties include, but are not limited to,
those identified in its most recently filed annual information
form, including under the heading "Risk Factors and Uncertainties",
and in its most recently filed management's discussion and
analysis, including under the headings "Caution Regarding
Forward-Looking Statements", "Risk Factors and Uncertainties" and
"Non-IFRS Measures, Key Metrics and Other Data", each available on
SEDAR at www.sedar.com, EDGAR at www.sec.gov and The Stars Group's
website at www.starsgroup.com, and in other filings that The Stars
Group has made and may make in the future with applicable
securities authorities in the future, should be considered
carefully. Investors are cautioned not to put undue reliance on
forward-looking statements or information. Any forward-looking
statement or information in this news release are expressly
qualified by this cautionary statement. Any forward-looking
statement or information 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.
Non-IFRS Measures
This news release references non-IFRS financial measures. The
Stars Group believes these non-IFRS financial measures will provide
investors with useful supplemental information about the financial
and operational performance of its business, enable comparison of
financial results between periods where certain items may vary
independent of business performance, and allow for greater
transparency with respect to key metrics used by management in
operating its business, identifying and evaluating trends, and
making decisions. The Stars Group believes that such non-IFRS
financial measures provide useful information about its underlying,
core operating results and trends, enhance the overall
understanding of its past performance and future prospects and
allow for greater transparency with respect to metrics and measures
used by management in its financial and operational
decision-making.
Although management believes these non-IFRS financial measures
are important in evaluating The Stars Group, they are not intended
to be considered in isolation or as a substitute for, or superior
to, financial information prepared and presented in accordance with
IFRS. They are not recognized measures under IFRS and do not have
standardized meanings prescribed by IFRS. These measures may be
different from non-IFRS financial measures used by other companies
any may not be comparable to similar meanings prescribed by other
companies, limiting its usefulness for comparison purposes.
Moreover, presentation of certain of these measures is provided for
period-over-period comparison purposes, and investors should be
cautioned that the effect of the adjustments thereto provided
herein have an actual effect on The Stars Group's operating
results. In addition to QNY, which is defined below under "Key
Metrics and Other Data",
The Stars Group provides the following non-IFRS measures in this
news release:
Adjusted EBITDA means net earnings before financial expenses,
income tax expense (recovery), depreciation and amortization,
stock-based compensation, restructuring, net earnings (loss) on
associate and certain other items as set out in the reconciliation
tables under "Reconciliation of Non-IFRS Measures to Nearest IFRS
Measures" above.
Adjusted EBITDA Margin means Adjusted EBITDA as a proportion of
total revenue.
Adjusted Net Earnings means net earnings before interest
accretion, amortization of intangible assets resulting from
purchase price allocations following acquisitions, stock-based
compensation, restructuring, the re-measurement of contingent
consideration, the re-measurement of embedded derivatives,
ineffectiveness on cash flow hedges, certain non-recurring tax
adjustments and settlements, net earnings (loss) on associate, and
certain other items as set out in the reconciliation table under
"Reconciliation of Non-IFRS Measures to Nearest IFRS Measures"
above. Each adjustment to net earnings is then adjusted for the tax
impact, where applicable, in the respective jurisdiction to which
the adjustment relates.
Adjusted Diluted Net Earnings per Share means Adjusted Net
Earnings attributable to the Shareholders of The Stars Group Inc.
divided by Diluted Shares. Diluted Shares means the weighted
average number of Common Shares on a fully diluted basis, including
options, other equity-based awards such as warrants and any
convertible preferred shares of The Stars Group then
outstanding. The effects of anti-dilutive potential Common
Shares are ignored in calculating Diluted Shares. Diluted Shares
used in the calculation of diluted(loss) earnings per share may
differ from diluted shares used in the calculation of Adjusted
Diluted Net Earnings per Share where the dilutive effects of the
potential Common Shares differ. See note 8 in the Q3 2019 Financial
Statements. For the three and nine months ended September 30, 2019, Diluted Shares used for the
calculation of Adjusted Diluted Net Earnings per Share equaled
288,759,876 and 281,853,401, respectively, compared with
269,526,633 and 232,640,294 for the prior year periods,
respectively.
Constant Currency Revenue means IFRS reported revenue for the
relevant period calculated using the applicable prior year period's
monthly average exchange rates for its local currencies other than
the U.S. dollar. Currently, The Stars Group provides Constant
Currency Revenue for the International segment and its applicable
lines of operations for the three and nine months ended
September 30, 2019, and for the
United Kingdom and Australia segments and their applicable lines
of operations for the three months ended September 30, 2019. However, it does not
currently provide Constant Currency Revenue for the United Kingdom and Australia segments for the nine months ended
September 30, 2019 because the
Corporation does not yet have full reported comparative periods for
these segments as a result of the respective acquisition dates of
Sky Betting & Gaming and BetEasy, and with respect to BetEasy,
as of June 30, 2018, the Corporation
had not yet completed the previously announced migration of the
customers of what was formerly the William Hill Australia business
onto the BetEasy platform. It does not currently provide Constant
Currency Revenue for the United
Kingdom and Australia
segments because The Stars Group does not yet have full reported
comparative periods for these segments as a result of the
respective acquisition dates of Sky Betting & Gaming and
BetEasy, and with respect to BetEasy, the Corporation had not yet
completed the previously announced migration of the former William
Hill Australia customers onto the BetEasy platform. The Corporation
intends to provide information on the impact of foreign exchange
rates for these segments either individually or on a consolidated
basis when applicable reported comparative period information is
available that the Corporation believes would be reasonably
comparable to the current periods as noted above.
Free Cash Flow means net cash flows from operating activities
after adding back customer deposit liability movements and after
capital expenditures and debt servicing cash flows (excluding
voluntary prepayments).
Net Debt means total long-term debt less operational cash.
For additional information on certain of The Stars Group's
non-IFRS measures and the reasons why it believes such measures are
useful, see above and the Q3 2019 MD&A, including under the
headings "Management's Discussion and Analysis", "Non-IFRS
Measures, Key Metrics and Other Data", "Segment Results of
Operations" and "Reconciliations".
Key Metrics and Other Data
The Stars Group provides the following key metrics in this news
release:
QAUs for the International and Australia reporting segments means active
unique customers (online, mobile and desktop client) who (i) made a
deposit or transferred funds into their real-money account with The
Stars Group at any time, and (ii) generated real-money online rake
or placed a real-money online bet or wager during the applicable
quarterly period. The Stars Group defines "active unique customer"
as a customer who played or used one of its real-money offerings at
least once during the period, and excludes duplicate counting, even
if that customer is active across multiple lines of operation
(Poker, Gaming and/or Betting, as applicable) within the applicable
reporting segment. The definition of QAUs excludes customer
activity from certain low-stakes, non-raked real-money poker games,
but includes real-money activity by customers using funds (cash and
cash equivalents) deposited by The Stars Group into such customers'
previously funded accounts as promotions to increase their lifetime
value.
QAUs for the United Kingdom
reporting segment (which currently includes the Sky Betting &
Gaming business operations only) means active unique customers
(online and mobile) who have settled a Stake (as defined below) or
made a wager on any betting or gaming product within the applicable
quarterly period. The Stars Group defines "active unique customer"
for the United Kingdom reporting
segment as a customer who played at least once on one of its
real-money offerings during the period, and excludes duplicate
counting, even if that customer is active across more than one line
of operation.
QNY means combined revenue for its lines of operation (i.e.,
Poker, Gaming and/or Betting, as applicable) for each reporting
segment, excluding Other revenue, as reported during the applicable
quarterly period (or as adjusted to the extent any accounting
reallocations are made in later periods) divided by the total QAUs
during the same period.
Net Deposits for the International segment means the aggregate
of gross deposits or transfer of funds made by customers into their
real-money online accounts less withdrawals or transfer of funds by
such customers from such accounts, in each case during the
applicable quarterly period. Gross deposits exclude (i) any
deposits, transfers or other payments made by such customers into
The Stars Group's play-money and social gaming offerings, and (ii)
any real-money funds (cash and cash equivalents) deposited by The
Stars Group into such customers' previously funded accounts as
promotions to increase their lifetime value.
Stakes means betting amounts wagered on The Stars Group's
applicable online betting product offerings and is also an industry
term that represents the aggregate amount of funds wagered by
customers within the Betting line of operation for the period
specified.
Betting Net Win Margin means Betting revenue as a proportion of
Stakes.
The Stars Group is also continuing to integrate its recent
acquisitions, as applicable, and once complete, The Stars Group may
revise or remove currently presented key metrics or report certain
additional or other measures in the future.
For additional information on The Stars Group's key metrics and
other data, see the Q3 2019 MD&A, including under the headings
"Non-IFRS Measures, Key Metrics and Other Data" and "Segment
Results of Operations".
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF (LOSS)
EARNINGS
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
In thousands of U.S.
Dollars (except per share and share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
|
|
622,484
|
|
|
571,983
|
|
|
1,840,486
|
|
|
1,376,386
|
|
Cost of revenue
(excluding depreciation and amortization)
|
|
(166,025)
|
|
|
(129,226)
|
|
|
(502,571)
|
|
|
(293,127)
|
|
Gross profit
(excluding depreciation and amortization)
|
|
456,459
|
|
|
442,757
|
|
|
1,337,915
|
|
|
1,083,259
|
|
General and
administrative
|
|
(335,477)
|
|
|
(267,163)
|
|
|
(871,274)
|
|
|
(671,256)
|
|
Sales and
marketing
|
|
(91,390)
|
|
|
(92,531)
|
|
|
(255,648)
|
|
|
(196,848)
|
|
Research and
development
|
|
(13,258)
|
|
|
(11,862)
|
|
|
(39,167)
|
|
|
(29,023)
|
|
Operating
income
|
|
16,334
|
|
|
71,201
|
|
|
171,826
|
|
|
186,132
|
|
(Loss) gain on
re-measurement of deferred contingent payment
|
|
—
|
|
|
(5,056)
|
|
|
12,713
|
|
|
(8,753)
|
|
Gain on re-measurement
of embedded derivative
|
|
15,400
|
|
|
11,300
|
|
|
50,200
|
|
|
11,300
|
|
Unrealized foreign
exchange loss on financial instruments associated with financing
activities
|
|
(5,811)
|
|
|
(300)
|
|
|
(7,151)
|
|
|
(300)
|
|
Other net financing
charges
|
|
(67,853)
|
|
|
(80,604)
|
|
|
(229,248)
|
|
|
(275,618)
|
|
Net financing
charges
|
|
(58,264)
|
|
|
(74,660)
|
|
|
(173,486)
|
|
|
(273,371)
|
|
Net earnings from
associates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,068
|
|
Loss before income
taxes
|
|
(41,930)
|
|
|
(3,459)
|
|
|
(1,660)
|
|
|
(86,171)
|
|
Income tax (expense)
recovery
|
|
(9,785)
|
|
|
13,189
|
|
|
(17,768)
|
|
|
15,438
|
|
Net (loss)
earnings
|
|
(51,715)
|
|
|
9,730
|
|
|
(19,428)
|
|
|
(70,733)
|
|
Net (loss) earnings
attributable to
|
|
|
|
|
|
|
|
|
Shareholders of The
Stars Group Inc.
|
|
(51,299)
|
|
|
15,127
|
|
|
(18,629)
|
|
|
(63,067)
|
|
Non-controlling
interest
|
|
(416)
|
|
|
(5,397)
|
|
|
(799)
|
|
|
(7,666)
|
|
Net (loss)
earnings
|
|
(51,715)
|
|
|
9,730
|
|
|
(19,428)
|
|
|
(70,733)
|
|
(Loss) earnings per
Common Share (U.S. dollars)
|
|
|
|
|
|
|
|
|
Basic
|
|
($0.18)
|
|
|
$0.06
|
|
|
($0.07)
|
|
|
($0.34)
|
|
Diluted
|
|
($0.18)
|
|
|
$0.06
|
|
|
($0.07)
|
|
|
($0.34)
|
|
Weighted average
Common Shares outstanding (thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
287,944
|
|
|
257,322
|
|
|
281,061
|
|
|
186,517
|
|
Diluted
|
|
287,944
|
|
|
269,527
|
|
|
281,061
|
|
|
186,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
|
|
As at September
30,
|
|
As at December
31,
|
In thousands of U.S.
Dollars
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents - operational
|
|
405,776
|
|
|
392,853
|
|
Cash and cash
equivalents - customer deposits
|
|
309,674
|
|
|
328,223
|
|
Total cash and cash
equivalents
|
|
715,450
|
|
|
721,076
|
|
Restricted cash
advances and collateral
|
|
8,876
|
|
|
10,819
|
|
Prepaid expenses and
other current assets
|
|
70,716
|
|
|
43,945
|
|
Current investments -
customer deposits
|
|
102,892
|
|
|
103,153
|
|
Accounts
receivable
|
|
103,925
|
|
|
136,347
|
|
Income tax
receivable
|
|
38,850
|
|
|
26,085
|
|
Total current
assets
|
|
1,040,709
|
|
|
1,041,425
|
|
Non-current
assets
|
|
|
|
|
Restricted cash
advances and collateral
|
|
10,451
|
|
|
10,630
|
|
Prepaid expenses and
other non-current assets
|
|
29,933
|
|
|
32,760
|
|
Non-current accounts
receivable
|
|
15,100
|
|
|
14,906
|
|
Property and
equipment
|
|
132,262
|
|
|
85,169
|
|
Income tax
receivable
|
|
11,390
|
|
|
15,611
|
|
Deferred income
taxes
|
|
6,500
|
|
|
1,775
|
|
Derivatives
|
|
149,957
|
|
|
54,583
|
|
Intangible
assets
|
|
4,417,986
|
|
|
4,742,699
|
|
Goodwill
|
|
5,178,527
|
|
|
5,265,980
|
|
Total non-current
assets
|
|
9,952,106
|
|
|
10,224,113
|
|
Total
assets
|
|
10,992,815
|
|
|
11,265,538
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
other liabilities
|
|
469,638
|
|
|
424,007
|
|
Customer
deposits
|
|
410,422
|
|
|
423,739
|
|
Current
provisions
|
|
59,238
|
|
|
39,189
|
|
Derivatives
|
|
14,546
|
|
|
16,493
|
|
Income tax
payable
|
|
48,193
|
|
|
72,796
|
|
Current portion of
lease liability
|
|
19,341
|
|
|
—
|
|
Current portion of
long-term debt
|
|
35,750
|
|
|
35,750
|
|
Total current
liabilities
|
|
1,057,128
|
|
|
1,011,974
|
|
Non-current
liabilities
|
|
|
|
|
Lease
liability
|
|
36,938
|
|
|
—
|
|
Long-term
debt
|
|
5,008,469
|
|
|
5,411,208
|
|
Long-term
provisions
|
|
7,408
|
|
|
4,002
|
|
Derivatives
|
|
41,376
|
|
|
6,068
|
|
Other long-term
liabilities
|
|
402
|
|
|
79,716
|
|
Income tax
payable
|
|
13,722
|
|
|
18,473
|
|
Deferred income
taxes
|
|
545,339
|
|
|
580,697
|
|
Total non-current
liabilities
|
|
5,653,654
|
|
|
6,100,164
|
|
Total
liabilities
|
|
6,710,782
|
|
|
7,112,138
|
|
EQUITY
|
|
|
|
|
Share
capital
|
|
4,356,753
|
|
|
4,116,287
|
|
Reserves
|
|
(561,368)
|
|
|
(469,629)
|
|
Retained
earnings
|
|
484,132
|
|
|
502,761
|
|
Equity attributable
to the Shareholders of The Stars Group Inc.
|
|
4,279,517
|
|
|
4,149,419
|
|
Non-controlling
interest
|
|
2,516
|
|
|
3,981
|
|
Total
equity
|
|
4,282,033
|
|
|
4,153,400
|
|
Total liabilities
and equity
|
|
10,992,815
|
|
|
11,265,538
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
Nine Months Ended
September 30,
|
In thousands of U.S.
Dollars
|
|
2019
|
|
2018
|
Operating
activities
|
|
|
|
|
Net loss
|
|
(19,428)
|
|
|
(70,733)
|
|
Add
(deduct):
|
|
|
|
|
Income tax expense
(recovery) recognized in net loss
|
|
17,768
|
|
|
(15,438)
|
|
Net financing
charges
|
|
173,486
|
|
|
273,371
|
|
Depreciation and
amortization
|
|
323,965
|
|
|
182,781
|
|
Stock-based
compensation
|
|
13,511
|
|
|
8,802
|
|
Unrealized loss on
foreign exchange
|
|
4,633
|
|
|
58,654
|
|
Unrealized (gain)
loss on investments
|
|
(443)
|
|
|
584
|
|
Impairment of
intangible assets
|
|
2,787
|
|
|
4,901
|
|
Net earnings from
associates
|
|
—
|
|
|
(1,068)
|
|
Realized (gain) loss
on current investments and promissory note
|
|
(578)
|
|
|
420
|
|
Income taxes
paid
|
|
(61,757)
|
|
|
(27,182)
|
|
Changes in non-cash
operating elements of working capital
|
|
21,143
|
|
|
(49,805)
|
|
Customer deposit
liability movement
|
|
(762)
|
|
|
12,349
|
|
Other
|
|
6,160
|
|
|
(8,329)
|
|
Net cash inflows
from operating activities
|
|
480,485
|
|
|
369,307
|
|
Investing
activities
|
|
|
|
|
Acquisition of
subsidiaries, net of cash acquired
|
|
—
|
|
|
(1,865,262)
|
|
Additions to intangible
assets
|
|
(21,321)
|
|
|
(16,268)
|
|
Additions to property
and equipment
|
|
(15,851)
|
|
|
(18,791)
|
|
Additions to deferred
development costs
|
|
(59,216)
|
|
|
(32,686)
|
|
Net sale of investments
utilizing customer deposits
|
|
261
|
|
|
18,543
|
|
Cash movement from
restricted cash
|
|
—
|
|
|
35,000
|
|
Settlement of minimum
revenue guarantee
|
|
(675)
|
|
|
—
|
|
Net investments in
associates
|
|
—
|
|
|
1,068
|
|
Other
|
|
(1,730)
|
|
|
(1,074)
|
|
Net cash outflows
from investing activities
|
|
(98,532)
|
|
|
(1,879,470)
|
|
Financing
activities
|
|
|
|
|
Issuance of Common
Shares
|
|
235,963
|
|
|
717,250
|
|
Transaction costs on
issuance of Common Shares
|
|
—
|
|
|
(32,312)
|
|
Issuance of Common
Shares in relation to stock options
|
|
1,922
|
|
|
30,572
|
|
Redemption of SBG
preferred shares
|
|
—
|
|
|
(663,407)
|
|
Repayment of
shareholder loan on acquisition
|
|
—
|
|
|
(10,879)
|
|
Issuance of long-term
debt
|
|
—
|
|
|
5,957,976
|
|
Repayment of long-term
debt
|
|
(376,813)
|
|
|
(2,865,456)
|
|
Repayment of long-term
debt assumed on business combinations
|
|
—
|
|
|
(1,079,729)
|
|
Transaction costs on
long-term debt
|
|
—
|
|
|
(36,559)
|
|
Settlement of
derivatives
|
|
—
|
|
|
(125,822)
|
|
Repayment of lease
liability principal
|
|
(12,275)
|
|
|
—
|
|
Interest
paid
|
|
(228,313)
|
|
|
(128,391)
|
|
Acquisition of further
interest in subsidiaries
|
|
—
|
|
|
(48,240)
|
|
Capital contribution
from the holders of non-controlling interest
|
|
—
|
|
|
12,060
|
|
Proceeds on loan issued
to the holders of non-controlling interest
|
|
4,894
|
|
|
31,730
|
|
Net cash (outflows)
inflows from financing activities
|
|
(374,622)
|
|
|
1,758,793
|
|
Increase in cash and
cash equivalents
|
|
7,331
|
|
|
248,630
|
|
Unrealized foreign
exchange difference on cash and cash equivalents
|
|
(12,957)
|
|
|
(12,292)
|
|
Cash and cash
equivalents – beginning of period
|
|
721,076
|
|
|
510,323
|
|
Cash and cash
equivalents – end of period
|
|
715,450
|
|
|
746,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For investor relations and media inquiries, please
contact:
Vaughan Lewis
Senior Vice President, Communications
ir@starsgroup.com
press@starsgroup.com
View original
content:http://www.prnewswire.com/news-releases/the-stars-group-reports-third-quarter-2019-results-300953585.html
SOURCE The Stars Group