Sky Betting and Gaming Makes New Owner Happy with £670 Million Revenue Win

Sky Betting and Gaming (SBG) raked £670.5 million during the fiscal year ending June 2018 according to the company’s latest financial report.

Sky Bet

A profitable World Cup has helped Sky Betting and Gaming record a £670.5 million revenue win. (Image: Sky Betting and Gaming)

The revenue summary is the first one published since The Stars Group completed its £3.36 billion acquisition of the gaming company back in July. For the new parent company, the latest figures will make for pleasant reading as improvements were made across the board.

World Cup Win for Sky Bet

Sports betting revenue from Sky Bet increased by 37 percent to £407 million, thanks, in part, to favourable football results. With punters spending an estimated £2 billion on the World Cup, bookmakers across the UK enjoyed a profitable summer.

For SBG, its sports betting platform had a better World Cup than most thanks to an improved net win margin. In addition to more action through its sportsbook, SBG’s operating profit was up 26.5 percent from £68.6 million to £86.7 million.

It was also good news for the company’s casino gaming and poker divisions. Comparing year-on-year earnings, gaming revenue was up 19 percent to £239 million, while Ebitda (earnings before interest, tax, depreciation and amortisation) for the year was £209m (a 43 percent increase).

Online Focus Shield SBG From FOBT Cuts

In context, SBG’s latest set of results should give investors to smile about. Being an online-only operator, the company won’t be affected by the recent fixed odds betting terminal (FOBT) legislation.

While the new £2 betting limit has forced Ladbrokes Coral and William Hill to consider closing hundreds of betting shops, it’s been business as usual for SBG. In fact, with The Stars Group giving the company greater access to global markets, bosses are now looking towards expansion projects in 2019.

The transaction with The Stars Group will allow us to offer our best- in-class products to a truly global audience,” said SBG chief executive, Richard Flint.

SBG and The Stars Group were released from the initial enforcement order imposed by the Competitions and Markets Authority (CMA) in mid-September.

With an investigation into the impact of the merger complete and nothing else standing in their way, the two operators can start the official integration process and look to build on the recent revenue report.

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