225Research

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Equity Report

The Stars Group 2019

 

Below is an excerpt from out 2019 Stars Group report, Download the full report here 

Overview

The Stars Group, (TSG on the Nasdaq, TSGI on the TSX) is a global leading online gambling company in terms of brands, revenue, and scale. The company started off as Amaya Gaming and purchased PokerStars in 2014, then a while after, rebranded to The Stars Group Inc. From then, the company has further expanded with purchases, most recently acquiring Sky Betting & Gaming, William Hill Australia, and an 80% ownership in CrownBet Australia. The company is led by CEO Rafi Ashkenazi, who has been with the company since 2013, and became appointed CEO in November 2015, with a vast background in the iGaming space. Over the years, Rafi and the rest of management have shown their ability to execute, evident by the stock price being $6/share 5 years ago, to as high as almost $40/share earlier this year, with revenue and earnings exponentially
increasing in that timeline.

Its noteworthy management has a decent stake in the company, even after selling a large number of shares in the private placement in 2018. Insiders own around 4% of the current float and have been net buyers lately as the stock price has had trouble gaining a footing. Other big TSG holders include Caledonia Investments, a highly accredited hedge fund who owns close to 20% of the company, and Blackstone, who has TSG as its 4th largest equity holding. For both groups, positions were initiated at higher prices, showing that some big investors believe in the company and see potential long term.

Want more? Download the full report here

TSGI Report Cover Final