Citing a healthy performance for the June quarter, which has continued into July, the Australian operator’s recovery from Covid-19 seems to be picking up some steam. However, The Star said its full-year results will be impacted by a net loss for the first half.
For the final three months of FY22, The Star’s domestic revenue exceeded pre-Covid levels by 11%, climbing to AU$512m.
Broken down, slots revenue experienced a 28% rise while non-gaming revenue was up by 26%. However, The Star said table revenue “had not fully recovered,” but was within 5% of pre-pandemic levels.
The Star Gold Coast, meanwhile, performed well during the June quarter, reporting a 48% revenue rise over pre-Covid levels.
This benefitted from a recovery in domestic tourism and the opening of The Dorsett Gold Coast Hotel and The Star Residences.
Elsewhere, Brisbane domestic revenue was up by 13% when compared to pre-pandemic figures, while The Star Sydney returned to pre-Covid levels.
Nevertheless, The Star’s expected AU$1.53bn for FY22 as a whole is still far lower than the AU$2.5bn in normalised gross revenue it recorded for FY19.
In fact, The Star’s anticipated revenue for FY22 is even lower than the AU$1.56bn it generated last year.
The company said: “The full year result will be impacted by the first half net loss associated with the property closures, operating restrictions and border closures as well as costs associated with the regulatory reviews and increased investment in regulatory and compliance functions.”
The Star also offered an update on its casino development at Queen’s Wharf in Brisbane. The project has been delayed from mid-2023 to H2 as a result of “higher than average rainfall.”
The development will also rise in cost by around 10% due to higher construction material costs, labour shortages and supply chain challenges, among other things.