Gaming company Stars Group sees revenue surge due to online poker in COVID-19 lockdowns
The Stars Group Inc. says it saw record revenue in its first quarter as COVID-19 led to an increase in online poker and casino games starting in March.
And, it says, it has continued to see increased activity in its online poker and casino business into the second quarter.
In an update to its expectations for the three-month period ended March 31, the company says it expects revenue of approximately $735 million US, up from $580 million US in the first quarter of 2019.
The TSX-listed company, which keeps its books in U.S. dollars, also expects a net loss between $69 million and $79 million or between 23 and 27 cents per diluted share, compared with net income of $28 million a year ago.
On an adjusted basis, the Stars Group expects a profit between $185 million and $192 million for the quarter or between 63 and 65 cents per share, up from an adjusted profit of $106 million in the first quarter of 2019.
The Stars Group has signed a deal to be acquired by Flutter Entertainment in a combination that will create one of the world's largest online betting and gambling companies. A meeting of the Stars Group shareholders to vote on the deal is set for April 24 using a virtual only format.