The Star Entertainment revenue down 14.6% in H1

The Star posted AU$9.1m (US$5.9m) in profit after tax for H1.
The Star posted AU$9.1m (US$5.9m) in profit after tax for H1.

Revenue for the first half of the financial year was AU$865.7m (US$556m).

Australia.- The Star Entertainment Group has reported net revenue of AU$865.7m (US$556m) for the first half of the financial year 2024. Revenue was down 14.6 per cent year-on-year

After a AU$1.26bn (US$820m) loss the year before, the casino operator posted AU$9.1m (US$5.9m) in profit after tax. EBITDA declined by 43.1 per cent in year-on-year terms, to AU$113.6m (US$73.8m).

The Star Sydney revenue was AU$450m (US$2926m) for the period, down 16.9 per cent year-on-year. EBITDA was AU$37.4m (US$24.3m), down 57.2 per cent. The Star Gold Coast revenue was AU$238.1m (US$155m), down 13.6 per cent, while EBITDA was AU$44.6m (US$29m), down 32.6 per cent. Treasury Brisbane revenue was down 9.6 per cent to AU$177.6m (US$115m), with EBITDA of AU$31.6m (US$20.5m), down 31.5 per cent.

The Star’s Group CEO and managing director, Robbie Cooke, said: “While the group continues to operate in a challenging regulatory environment, The Star has achieved a number of significant milestones in the period. The Group’s Remediation Plan was approved in Queensland. The resolution of the proposed increase to NSW casino duty rates has removed significant uncertainty for our Sydney property and has protected thousands of jobs for our team members in New South Wales.

“We have strengthened our Balance Sheet with the successful raising of AU$750m of additional equity and AU$450m in new debt facilities. Importantly also, our Queen’s Wharf Brisbane joint venture settled the outstanding litigation with Multiplex – removing considerable uncertainty and distraction enabling the project team to focus solely on the delivery of this transformational precinct that will showcase Brisbane to locals as well as interstate and international visitors.

“Notwithstanding these achievements, there is still much work to be done. Remediation remains our number one priority. We continue to uplift our risk management, safer gambling and AML capabilities 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 have commenced the introduction of significant harm minimisation measures. Our remediation program will track and hold us accountable to the multi-year program we are committed to delivering.

“In terms of trading performance, earnings have maintained the run rate experienced on exiting Q4 FY23 with EBITDA of AU$114m in the half. The start of this calendar year has seen revenue and earnings continue to track our first-half run rate.

“Despite the challenges of the past 18 months, as a team we are progressing and continuing to work hard to do all that we possibly can to restore our suitability and earn back trust. As a team we are committed to our strategic ‘North Star’ looking to deliver sustainable outcomes for our guests, our team members, the communities in which we exist and our shareholders, by providing entertainment, gaming, and leisure experiences in a safe, responsible, and ethical way.”

“We welcome the inquiry called in New South Wales to assist the NICC in forming a view as to what (if any) action it should take in respect of The Star Pty Ltd (the holder of our NSW licence), prior to the end of the Manager’s appointment on 30 June 2024. This inquiry will provide an objective forum in which The Star will be able to demonstrate in NSW it is capable of returning to suitability with particular reference to the actions that have been put in place since the Bell report was published on 13 September 2022. The Star intends to participate in the inquiry in an open, transparent and facilitative manner.”

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The Star Entertainment Group