Casinos in Australia: The Star posts quarterly revenue of US$230.85m
Revenue was down 18 per cent year-on-year.
Australia.- The Star Entertainment Group has shared its financial results for the first quarter of its financial year. It posted revenue of AU$351m (US$230.85m), down 18 per cent year-on-year and 11 per cent sequentially. Earnings before interest, taxes, depreciation and amortisation (EBITDA) was negative AU$18m (US$11.84m) compared to positive AU$23m (US$15.1m) in the previous quarter.
The company cited a “challenging operating environment and the continued implementation of mandatory carded play and cash limits.”
The Star Sydney revenue was AU$186m (US$122.23m), down 11 per cent sequentially and 16 per cent in year-on-year terms. EBITDA was negative AU$21m (US$13.8m) compared to positive AU$22m (US$14.47m) in the first quarter of the last financial year. The casino operator was affected by a AU$4.4m (US$2.9m) impact from system outages in July. It said “the challenging consumer environment and changes in business practices have weighed heavily on gaming, particularly in the premium segment.”
In the 50 days before the introduction of mandatory carded play and cash limits on August 19, revenue was down 11 per cent compared to the prior-year average. Since August 19, revenue declined a further 12 per cent. Electronic gaming machines have faced pressure from competitors.
The Star Gold Coast revenue was AU$108m (US$71m), down 9 per cent year-on-year but up 6 per cent compared to the previous quarter. EBITDA was positive at AU$7m (US$4.6m) but down 33 per cent from the previous quarter and down 70 per cent yearly.
The company stated: “With fully carded play and cash limits not yet introduced revenue has stabilised and the anticipated seasonal uplift materialised in the quarter, albeit from a lower base.
“Hospitality revenue is up 10 per cent on 4Q FY24 (1Q FY24 up 11 per cent on 4Q FY23) and Gaming revenue, although impacted by system outages, up 3 per cent (FY24 up 6 per cent). Ongoing higher remediation and regulatory costs continue to impact EBITDA. Excluding these, margins were slightly improved on 4Q FY24.”
Treasury Brisbane posted a revenue of AU$53m (US$38.86m), with EBITDA of AU$2m (US$1.32m). The venue closed on August 25. The Star Brisbane, which commenced operations on August 29, brought in AU$4m (US$2.63m), but EBITDA was negative AU$7m (US$4.6m).
The Star reported its available cash as of September 30 as AU$149m (US$98m), boosted by net proceeds of AU$60.4m (US$39.72m) from the sale of the Treasury Brisbane Casino building.
See also: The Star results: revenue down 10%
