Investor Day release excerpt... TORONTO, March 27, 2019 /CNW/ - The Stars Group Inc. (NASDAQ: TSG) (TSX: TSGI) will host its 2019 Investor Day today in New York City beginning at 8:00 am ET.
The day will include presentations by Executive Chairman Dave Gadhia, Chief Executive Officer Rafi Ashkenazi, Chief Financial Officer Brian Kyle, and other senior executives who will provide certain highlights and updates, including potential growth opportunities, medium-term financial and leverage targets, an update on Sky Betting & Gaming cost synergies and a first quarter 2019 performance update. Unless otherwise noted, all dollar ($) amounts are in U.S. dollars.
"The Stars Group is now a diversified global market leader with what we believe to be leading product offerings and an expansive geographic reach. Building on this strong foundation, we are introducing medium-term growth targets as we continue to progress with our vision to be the world's favorite iGaming destination," said Mr. Ashkenazi.
"Looking ahead, we will strive to enhance our leadership positions within the high-growth markets in which we operate, as well as leverage the full suite of assets and capabilities across our businesses to provide what we believe to be the most exciting and engaging gaming experience to our customers. With powerful structural growth drivers in our industry, including a broad trend towards locally licensed online gaming, we believe that as one of the most licensed online gaming operators in the world, with proprietary technology that supports a highly scalable business model with limited capex, we are well-positioned to capitalize on this trend. We are focused on using our competitive advantages to continue to deliver strong organic growth and steady free cash flow generation to support our accelerated deleveraging plans while driving long-term shareholder value," concluded Mr. Ashkenazi.
Financial and Leverage Targets
In conjunction with its Investor Day, The Stars Group is announcing the following financial and leverage target ranges that it currently believes it has an opportunity to achieve over the three to five year period from its previously announced full year 2019 financial guidance ranges, as applicable:
- Annual Constant Currency Revenue growth of 8% to 12%;
- Adjusted EBITDA Margin range broadly in line with the implied Adjusted EBITDA Margin from The Stars Group's 2019 financial guidance, with fluctuations during the period based on potential investments in new and existing markets to support growth;
- Annual Adjusted Diluted Net Earnings per Share growth of at least 10%; and
- Leverage of 3.5x or lower. .........