The Star Entertainment Group has provided an update on its expected fiscal year 2022 revenue.
Australia.- The Star Entertainment Group Limited has provided an update on its expected fiscal year 2022 revenue. It expects to report revenue of $1.53bn for the year ending June 30.
It revealed that slots revenue was up 28 per cent in the June quarter. Non-gaming revenue was up 26 per cent. Domestic revenue up 11 per cent on pre-pandemic levels to AU$512m. Table revenue has not fully recovered but was within 5 per cent of pre-pandemic levels.
The company said its Gold Coast venue’s domestic revenue was up 48 per cent on pre-pandemic levels thanks to the recovery in domestic tourism and the opening of The Dorsett Gold Coast Hotel and The Star Residences.
However, the casino operator indicated that full-year results will be negatively affected by the first-half net loss associated with property closures, operating restrictions and border closures as well as expenses associated with regulatory reviews. The Star expects to release its full-year results on August 22.
Update on Queen’s Wharf Brisbane integrated resort development
The Star has announced that its Queen’s Wharf Brisbane integrated resort development is now expected to open in the second half of 2023 mainly due to higher than average rainfall and the impact of Covid-19.
The company said: “Total project costs are expected to be up circa 10 per cent on prior guidance of AU$2.6bn due to escalating construction material costs, labour shortages, supply chain challenges and the programme delay as well as the inclusion of capital equipment required to open.”
The Star said that, together with its joint venture partners, it had proposed funding the majority of the expected cost increase through additional equity contributions consistent with the interests of the existing joint venture. The remainder is expected to come from future operating cash flow.
The Star owns 50 per cent of the development, with the other half divided equally between Chow Tai Fook and Far East Consortium.
In June, Queensland’s attorney general announced an independent expert review into the suitability of The Star to continue to hold casino licences in Queensland. Authorities have designated former judge The Honourable Robert Gotterson AO to lead the review, which will probe similar matters as those covered in New South Wales.
According to the government, the inquiry will examine Star’s commitment to anti-money laundering and counter-terrorism financing (AML/CTF) responsibilities, the management of VIP patrons, high rollers and international patrons and the use of China UnionPay debit or credit card facilities and other arrangements to facilitate gambling by Chinese nationals despite Chinese currency movement restrictions, among other topics.