Soft domestic outlook and potentially weak consumer sentiment set to negatively impact revenues in the early part of the year. <\/p>\n\n\n\n\n\n\n\n
Australia.- Star Entertainment Groups’s earnings will be negatively impacted in the coming months by a soft domestic outlook and potentially weak consumer sentiment, analysts from JP Morgan have said. <\/p>\n\n\n\n
As a result, JP Morgan has downgraded Star Entertainment Group to neutral.<\/p>\n\n\n\n
According to JP Morgan analyst, Don Carducci, soft domestic consumer spending will impact table games revenue growth \u2013 which is expected to reach 0.9 percent growth in 20H1. There will be limited near-term recovery as well, due to the opening of Barangaroo at the end of 2020.\u00a0<\/p>\n\n\n\n
VIP margins are also expected to compress and unlikely to recover in the short term, Carducci said.<\/p>\n\n\n\n
\u201cAlthough initial interest in Barangaroo will likely be strong when it opens two to three months earlier than originally announced (FY21H1), the negative impact of two casinos in one location is the gambler\u2019s ability to \u2018choose\u2019. Competitive promotions to capture and maintain local, finite gamblers pose margin risk,\u201d the analyst added.\u00a0<\/p>\n\n\n\n
The recent bushfires in Australia have also diverted some discretionary spending into donations and made consumers less willing and cautious to spend whilst others are struggling. <\/p>\n","protected":false},"excerpt":{"rendered":"
Soft domestic outlook and potentially weak consumer sentiment set to negatively impact revenues in the early part of the year.<\/p>\n","protected":false},"author":2,"featured_media":2964,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"JP Morgan analysts have downgraded Star Entertainment Group to neutral, citing a soft domestic outlook and weak consumer sentiment expected to negatively impact earnings. Competitive pressures from the upcoming Barangaroo opening and reduced discretionary spending post-bushfires are projected to compress VIP margins and limit near-term recovery in table games revenue.","focusai_entities":"Star Entertainment Group, JP Morgan, Don Carducci, Barangaroo","focusai_location":"Australia","focusai_target_profile":"ceo_executive (0.9), operator_casino (1.0), marketing_crm (0.7), investor_analyst (1.0), journalist_researcher (0.8)","focusai_suggestions":[{"label":"Star's Capital Allocation?","query":"How will Star Entertainment Group's capital allocation strategy adapt to the anticipated margin compression and increased competitive intensity from Barangaroo's market entry?"},{"label":"Mitigating Revenue Softness?","query":"What specific governance frameworks or operational adjustments are being considered by Star to mitigate the impact of reduced discretionary consumer spending and VIP margin erosion?"}],"footnotes":""},"categories":[160,16336,163],"tags":[289],"class_list":["post-2962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-australasia-news","category-finance-news","tag-australia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/2962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=2962"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/2962\/revisions"}],"predecessor-version":[{"id":2985,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/2962\/revisions\/2985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/2964"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=2962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=2962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=2962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}