Star Entertainment posts full-year net loss of US$1.57bn

The company’s net loss grew from AU$203m (US$130.6m) last year.

Australia.- The Star Entertainment Group has shared financial results for its fiscal year. It’s reported net loss grew from AU$203m (US$130.6m) in the prior year to AU$2.44bn (US$1.57bn). The company reported a 22 per cent year-on-year increase in gross revenue to AU$1.86bn (US$1.20bn) and a 34 per cent increase in EBITDA to AU$317m (US$204m).

The group said Star Sydney was impacted by more controls resulting in increased guest exclusions, higher levels of risk and compliance resourcing, certain operating restrictions, increased competition and weaker consumer discretionary spending. The venue saw gross revenue of AU$984m (US$633m), up 26 per cent year-on-year, and EBITDA of AU$127m (US$82m), up 57 per cent.

Table games contributed AU$498m (US$320m), up 19 per cent year-on-year, while EGMs saw 30 per cent revenue growth to AU$341m (US$219.15m). Non-gaming revenue was up 49 per cent at AU$140m (US$90m).

Star’s venue on the Gold Coast generated gross revenue of AU$509m (US$327m), up 20 per cent, and EBITDA of AU$107m (US$69m). It started the year strongly benefiting from a rise in domestic tourism and consumer spending post-Covid and a return in conventions. However, performance softened in H2 due to a rebound in outbound travel competing with domestic tourism, a rise in controls and a decline in consumer spending.

EGMs contributed AU$233m (US$150m) in revenue, up 9 per cent. Table games saw 52 per cent revenue growth at AU$169m (US$108.61m).

Star Brisbane reported gross revenue of AU$375m (US$241m), up 15 per cent, and EBITDA of AU$83m (US$52.7m), up 29 per cent year-on-year. EGMs revenue was up 17 per cent to AU$197m (US$126.6m), while tables grew 8 per cent to AU$143m (US$91.9m). Non-gaming’s contribution was AU$34m (US$21.85m), up 34 per cent.

The company said a process to refinance debt facilities is underway and that it will provide an update on in the coming months. It has reached an agreement with the NSW Government to amend the casino duty rates.

The board of directors commented: “To say it has been a challenging year completely understates the lived experience at The Star over the last 12 months. The consequences flowing from the damage to our social licence are felt daily by team members on multiple levels, reinforcing the critical need to understand the privilege and responsibility that comes with holding a casino licence. The ancillary challenges that have arisen in the year, and there are many, all follow from the breaches of trust identified in the Bell and Gotterson reports.

“As a team, we are determined to earn back the trust and confidence of our community including our regulators, governments, shareholders, employees and guests. We fully understand the responsibility involved in holding our licences and are committed to transforming our leadership and culture. This journey has started and we know there is still a lot to be done. 

“Remediation is our number one priority. We have commenced the uplift in our risk management, safer gambling and AML capability and are starting to embed greater accountability and more robust governance. We have invested in enhancing our control environments and are operationalising and embedding these controls. We are improving our financial crime management and our overall approach to harm minimisation. Our remediation program will track and hold us accountable to the multi-year program we are committed to delivering.”