Star Entertainment Group has reported normalised group revenue of AU$1.56bn while its net debt was reduced by AU$211m for the fiscal year ending June 30.
Australia.- Star Entertainment Group has shared financial results for its fiscal year, reporting revenue of AU$1.56bn with a statutory EBITDA of AU$427m, up 51 per cent.
According to the company, its Queensland venue saw record earnings from domestic gaming revenue amid Covid-19 restrictions that materially impacted revenues and earnings.
Star Sydney, which closed on June 25 and remains shut, saw a decline in gross revenue of 30 per cent to AU$832m, with a 96 per cent decline in VIP and a 10 per cent decline in domestic revenues.
The Gold Coast property saw gross revenue fall 28 per cent year-on-year, including a 100 per cent fall in VIP revenue while domestic revenues were up 26 per cent. Domestic gaming revenue at Star Gold Coast was also up 18 per cent in the second half.
Star Brisbane recorded a 38 per cent growth in domestic revenue. The figure was up 3 per cent year-on-year despite shutdowns in January, March and June. Group slots revenue for the second half was up 4 per cent.
According to its financial report, the casino operator will be focusing on international premium mass and direct premium customers once borders reopen.
Star loses case against Chubb Insurance over pandemic losses
The company recently lost its legal claim against Chubb Insurance at Federal Court. It had been demanding the insurer cover losses incurred due to lockdown measures during the Covid-19 pandemic.
Last November, the casino operator sued the insurance company, arguing that Covid-19 lockdown measures fall under “special risks” under “risks of business interruption” in an insurance policy signed in November 2019.
Star Entertainment was seeking AU$4bn for its Sydney casino, AU$1.75bn for its Gold Coast casino and AU$1.43bn for its Brisbane casino. Chubb said the lockdowns were not covered under the policy, arguing that the government’s actions had not caused any physical loss or damage of insured property.