The Star reports results amid ongoing challenges
Revenue was now 15 per cent sequentially.
Australia.- The Star Entertainment Group has shared financial results for the second quarter of its financial year. It posted revenue of AU$299m (US$185.4m), down 15 per cent sequentially. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were negative AU$8m (US$5m) compared to AU$18m (US$11.84m) in the previous quarter.
It company said the decline in revenue was mainly due to the closure of Treasury Brisbane Casino and softness at The Star Sydney following the implementation of mandatory carded play and cash limits partially offset by revenue growth at The Star Gold Coast.
The Star Sydney revenue was AU$176m (US$109.1m), down 6 per cent sequentially and 23 per cent in year-on-year terms. EBITDA was negative AU$4m (US$2.5m) compared to negative AU$21m (US$13m) in the first quarter. The Star Gold Coast revenue was AU$111m (US$68.8m), down 7 per cent year-on-year but up 3 per cent compared to the previous quarter. EBITDA was positive at AU$11m (US$6.8m) but down 48 per cent yearly.
The company said: “Hospitality revenue was 7 per cent ahead of Q1 and 2 per cent up on the prior year, partially offset by a continuing softness in the underlying gaming performance, with revenue slightly below Q1 and 13 per cent below the prior year.”
Treasury Brisbane posted revenue of AU$2m (US$1.2m) and negative EBITDA of AU$2m (US$1.2m). The venue closed on August 25. The Star Brisbane, which commenced operations on August 29, brought in AU$10m (US$6.2m). EBITDA was negative AU$13m (US$8.1m).
