Large sporting events are canceled or postponed, which leads to a drop in sales, especially for sports betting providers. The Stars Group trust in its online area and its worldwide reach. According to the annual report, 62% of total sales would be generated there.
As of December 31, 2019, The Stars Group stated that it had cash and cash equivalents of $321 million. In addition to other potential sources of liquidity, the company has access to its revolving credit facility, which along with its current cash and cash equivalents, provides approximately $ 1 billion in liquidity.
Good performance despite losses from Covid-19
PokerStars was forced to cancel or postpone several live events in Europe. The measures should affect the PokerStars Road to PSPC event, which should take place in Hamburg.
Numerous live activities of the poker community have been moved to the online platforms. It can be assumed that the demand for online poker is currently increasing strongly again.
Rafi Ashkenazi, CEO of Stars Group, comments:
“We are pleased with the performance of our business this year, which has continued strong momentum in our UK and Australia segments and a sequential improvement in our international segment from the fourth quarter of 2019.”
Management expectations were exceeded, Ashkenazi added. Compared to the previous year, sales growth is expected in the first quarter of 2020.
The ongoing effects of the coronavirus are being closely monitored because the safety of employees and customers is a priority, Ashkenazi said. Employees were given the opportunity to work from home offices to continue to ensure that PokerStars products were available to customers.
However, it is difficult for companies to make accurate forecasts. The performance of sports betting, poker and casino operators will depend on how long the measures imposed by the virus last.