Australian casino operator, The Star Entertainment Group Limited has purportedly recorded an overall loss of about $68.07 million for the twelve months to the end of June. Most of this downturn in fortunes can be attributed to the operation shuttering its Queensland and Victoria facilities in response to the Coronavirus threat.
Inside Asian Gaming reported that the company was obliged to close its The Star Gold Coast, Treasury Brisbane, and The Star Sydney properties for ten-weeks from March 23, resulting in an annual company-wide revenue drop of 31% year-on-year to $1.06 billion.
A hard knock
The publication went on to report that The Star Entertainment Group Limited would refrain from declaring a final dividend for the 12 months after noting a 49% year-on-year reduction in earnings before interest, tax, depreciation, and amortization to only $202.04 million.
In the eight months to the end of February, before the arrival of the Coronavirus, the firm had already recorded a 10.1% decrease in overall revenues to roughly $966.78 million but was still maintaining a profit of around $47.97 million.
The Star Sydney’s performance had been on a comparative plateau before the Coronavirus made itself known with the domestic and VIP sectors both showing signs of slowing growth. In contrast, the organisation advised that its Treasury Brisbane and The Star Gold Coast venues were doing well, with an 80.3% increase in VIP revenues, contributing to a 62% improvement for the financial year, valued at approximately $167.99 million.
The Star Entertainment Group Limited reported that July saw its VIP turnover al by 95% year-on-year with its domestic business falling by a less alarming 20%. The Star Sydney venue’s ability to trade was severely hampered by stricter social distancing requirements in Victoria.
In an official statement, the organisation made a show of confidence, expressing the determination to make a full recovery.
“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.”