Star Entertainment reports six-month net loss of US$53.2m

Star Entertainment
Star Entertainment

Star Entertainment Group was heavily impacted by property closures and capacity restrictions due to Covid-19 in the six months ending December 31.

Australia.- The impact of Covid-19 restrictions on Star Entertainment Group is apparent in the company’s latest financial report, which shows a net loss of AU$74m (US$53.2m) for the six months ending December 31. Group-wide gross revenue fell 29 per cent year-on-year to AU$581m (US$418m) while EBITDA declined 87 per cent to AU$31m (US$22.3m).

As for VIP gaming, the report shows an 89 per cent decline to AU$1.8m (US$1.3m), while domestic gaming revenue fell 24.3 per cent to AU$498m (US$358.3m). There was a slight increase in non-gaming revenue to AU$8.5m (US$6.1m).

The Star Sydney, which was closed from the start of the Australian financial year on July 1 until October 11 reported AU$239m (US$171.4m) in revenue for the period, down 39 per cent year-on-year, and an EBITDA loss of AU$25m. However, the company did note that revenue climbed 28 per cent upon October’s reopening.

The Star Gold Coast reported revenue of AU$180m (US$129m), up 5 per cent from the prior-year period, with EBITDA falling 50 per cent to AU$26m (US$18.6m). As for Treasury Brisbane, revenue fell by 11 per cent to AU$161m (US$115m), with EBITDA down 57 per cent to AU$29m (US$20.8m).

The Star Entertainment Group chairman John O’Neill said: “The group continued executing its strategy well in the context of the extraordinary Covid-19 related challenges. The fundamental earnings prospects for The Star’s domestic business remain attractive.

“They are underpinned by valuable long-term licences in compelling locations while the transformation of our properties into globally competitive integrated resorts is nearing completion. The Star remains committed to maintaining a balance sheet that positions the group for the post-Covid-19 recovery.”

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