The Star Entertainment Group Limited counting the cost of coronavirus
In Australia and local casino operator The Star Entertainment Group Limited has reportedly recorded an overall loss of approximately $68.07 million for the twelve months to the end of June due in large part to the temporary coronavirus-induced shuttering of its facilities in Queensland and Victoria.
According to a report from Inside Asian Gaming, the Sydney-listed firm was forced to close its The Star Gold Coast, Treasury Brisbane and The Star Sydney properties for a ten-week period from March 23 and subsequently saw its annual company-wide revenues drop by 31.1% year-on-year to $1.06 billion.
Bulky blow:
Inside Asian Gaming reported that The Star Entertainment Group Limited will not be declaring a final dividend for the twelve-month period after also chalking up a decline of 49% year-on-year in earnings before interest, tax, depreciation and amortization to only around $202.04 million. For the coronavirus-free eight months to the end of February and the source detailed that the casino firm had recorded a 10.1% decrease in overall revenues to roughly $966.78 million but had still managed to be in profit to the tune of about $47.97 million.
Previous performance:
It was also explained that business at The Star Sydney venue had been running relatively flat on a comparative basis before the appearance of coronavirus with slowdowns in both the domestic and VIP sectors. However, the firm purportedly asserted that its Treasury Brisbane and The Star Gold Coast facilities had been experiencing an 80.3% boost in VIP revenues and still managed to finish this financial year up by 62% to approximately $167.99 million.
Recent recovery:
For July and The Star Entertainment Group Limited reportedly pronounced that its VIP turnover had slipped by 95% year-on-year although its domestic business had returned to post only a comparable 20% reduction. It purportedly went on to declare that its internal custom had continued this trend right up to last weekend although trade at it’s the Star Sydney venue had been negatively impacted by the implementation of stricter social distancing requirements in Victoria.
Reportedly read a statement from The Star Entertainment Group Limited…
“Our business is fundamentally strong, which is evidenced by the step up in earnings growth from the first half to the early second half of the financial year. The long-term value uplift from investments in our network of integrated resorts and continuing operational improvements to drive visitation and earnings remain substantial.”
Source: Worldcasinodirectory, Worldcasinonews
