Published
Land-BasedCasinoFinancialResults

The Star Entertainment Group revenue down 1% for 1H FY23

The Star Entertainment Group has reported a 1% decline in group revenue on pre-Covid levels for 1H FY23.

aus
Listen To Article

The operator noted that earnings have been impacted by operational changes arising from the Bell and Gotterson Reviews, a step-up in remediation costs and increased competition in Sydney. The Star expressed that while its Queensland casinos performed strongly in the period, the operating environment in Sydney has been more challenging.

For 1H FY23, The Star Gold Coast revenue climbed 30% on pre-Covid levels and achieved its highest revenue result ever. Treasury Brisbane revenue climbed 9% on pre-Covid levels and boasted record performance across slots, main gaming floor tables and hospitality.

The Star Sydney, however, posted a 13.5% revenue decline on pre-Covid levels. The company expects to report underlying EBITDA of AU$195m (US$135m) to AU$205m in 1H FY23.

The group added that due to several factors – including the impact of operational changes implemented following the Bell Review, amendments to the NSW Casino Control Act and the potential for an increase in NSW casino duty rates starting in FY24 – it is anticipating a non-cash impairment charge in relation to its NSW business in the range of AU$400m to AU$1.6bn in its 1H FY23 results.

Furthermore, the operator stated that it is in discussions with the NSW Government on the implementation of the proposed changes to NSW casino duty rates, with the former noting that if implemented in their current form, the proposed duty rate increases would have a significant adverse impact on the profitability of The Star Sydney. Such a scenario would lead the group to undertake an urgent review of the venue’s operating model and assets, with a view to maximising value for its shareholders.

“We have been pleased with the ongoing strength of trading across our Queensland-based properties, while trading at The Star Sydney has been impacted by operational changes associated with the outcome of the Bell Review as well as competition from Crown Sydney,” said The Star Entertainment Group CEO and Managing Director Robbie Cooke.

“Whilst the outcome of recent regulatory and legislative developments remains uncertain, we have taken a prudent approach to assessing the carrying value of our assets, which has resulted in a non-cash impairment charge which will be recognised in our 1H FY23 results.”

Premium+ Connections
Premium

GammaStack

 
Premium

Digitain

 
Premium

Sport Generate

 
Premium

RISK

 
Premium

Galaxsys

 
Premium

PIN-UP Partners

 
Premium

1xBet Partners

 
Premium

Revsharks

 
 
Premium

Lynon

 
Premium

Imagine Live

 
Premium Connections
Consultancy

SCCG Management

Executive Profiles
Zeal Network SE

Stefan Tweraser

VIP Play

Les Ottolenghi

Scientific Games

Keshav Pitani

Social & App

Spribe CEO exclusive: Simplicity is the foundation

Spribe CEO David Natroshvili speaks to Gambling Insider abou...

Redefining iGaming: A history of crash games

Crash games is a growing vertical that has taken gambling by...

A certain something: What makes crash games special?

Crash games. They’re simple, they’re easy to learn and,...

Smarter innovation to shape the future

Spribe CCO Giorgi Tsutskiridze discusses the past, present a...

Facing Facts: The corner of quarterly contemplation

With Q1 reports out across the industry, Gambling Insider co...

Taking Stock: A guide to key stock prices across the industry

Gambling Insider tracks prices from some of the industry’s...

15 years of Gambling Insider: From the Founders

Over the last 15 years, Gambling Insider magazine has interv...

15 years of Gambling Insider: The Awards over time

Global Gaming Awards Event Manager Mariya Savova gives us he...