The Stars Group Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Earnings Guidance for the Full Year of 2018; Reports Impairment Charges for the First Quarter Ended March 31, 2018
The Stars Group Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported revenue was $392,891,000 against $317,320,000 a year ago. Net earnings before income taxes were $75,516,000 against $68,441,000 a year ago. Net earnings were $74,361,000 against $65,753,000 a year ago. Net earnings attributable to shareholders of the company were $75,451,000 against $65,411,000 a year ago. EBITDA was $159,789,000 against $144,765,000 a year ago. Adjusted EBITDA was $175,022,000 against $151,001,000 a year ago. Adjusted net earnings were $139,207,000 against $113,367,000 a year ago. Adjusted net earnings per diluted share were $0.66 against $0.56 a year ago. Diluted earnings from continuing operations per common share were $0.36 against $0.33 a year ago. Net cash inflows from operating activities were $132,069,000 against $95,547,000 a year ago. Purchase of property and equipment were $3,585,000 against $856,000 a year ago. Acquired intangible assets were $2,427,000 against $707,000 a year ago. The improvement in revenue was aided by organic growth in each of its verticals: poker, casino and sportsbook. As a result of this revenue growth the company's quarterly adjusted EBITDA increased by 16%. Net earnings was also impacted by acquisition-related costs of $7.7 million in quarter 1 2018. The increase in net earnings was primarily driven by the factors they noted for adjusted EBITDA and net earnings.
For the full year of 2018, the company expects revenues of $1,390 million to $1,470 million, adjusted EBITDA of $625 million to $650 million, adjusted net earnings of $487 million to $512 million and adjusted net earnings per diluted share of $2.33 to $2.47.
For the quarter, the company reported impairment of intangible assets and assets held for sale was $115,000.