Star Entertainment to raise $800m after $988m hit on Sydney casino

After being forced to pay $100m in fines in both New South Wales and Queensland, the Star Entertainment is raising $800m at a substantial discount.

Listen To Article

The company said it would raise the money at a share price of $1.20 or a 21% discount from its most recent trading price.

The stock transaction was a need to get covenant relief from lenders, to whom the Star owed $1.3bn as of 31 December.

The equity raise will decrease the Star's net debt from $1.1bn to $431m and gearing from 2.7 to 0.8 times.

The company also disclosed that it would take a $988m impairment charge on the Star Sydney, which has struggled financially since the Bell report and at a time when the NSW government is debating imposing significant tax increases on gaming tables and poker machines.

Robbie Cooke, CEO and Managing Director of Star, said: “If those tax hikes went ahead in their current form, it would cost Star about $100m a year, basically doubling its tax bill and forcing it to take drastic measures.

"It does put the business in a very difficult position, and it would require very significant changes to the business."

For the six months ending 31 December, Star reported a net profit after tax revenue of $44m on $1bn, excluding the $988m impairment.

The Star Gold Coast's income increased to $276m throughout the time, 30% more than in 2019–20. The Star Sydney's $541m income represented a 14% decrease from pre-Covid time.

Meanwhile, a 1,500-person ballroom, a sky deck, over 50 restaurants, bars and cafés, luxury shopping and 7.5 hectares of public space are all included in the $2.9bn Queen's Wharf Brisbane project, which is scheduled to open in December.

Casino News Sponsor
Premium+ Connections
Premium Connections
Executive Profiles
Wynn Macau
MGM Resorts Japan
Bloomberry Resorts Corporation
Sightline Payments

Global Gaming Awards Asia: What to expect in 2023

Gambling Insider looks ahead to the Global Gaming Awards Asi...

The power of the rebrand

With the help of industry experts, Gambling Insider Editor T...

Evolution Europe CEO Gionata La Torre: The Italian job

Evolution Group’s new CEO Europe, sits down with Gambling...

Big Question: How can slots innovate from here?

Simon Hammon, CEO of Relax Gaming, Erkki Nikunen, Partner &...

Read Magazine

30 March, 2023

Wilfred Wong: Macau “cannot just rely on gaming”

Sands China’s President and Executive Director, Wilfred Wong, has echoed earlier calls by the Chinese Government to diversify the gambling province of Macau.