The Star Expects AU$1.53bn In Revenue In 2022 Fiscal Year

The Star Entertainment Group, one of the operators of land-based casinos in Australia, has published a trading update in which it details its expected results for the 2022 financial year.

The company anticipates that its normalized revenue for the year will amount to 1.53 billion Australian dollars, helped by strong performance in the final quarter of the year. However, the first half of the fiscal year resulted in a net loss for the Australian company.

The final three months of the 2022 fiscal year brought encouraging results, with The Star’s domestic revenue amounting to 512 million Australian dollars, a figure which is 11 percent higher than pre-Covid levels.

Revenue from slot games went up by 28 percent year-on-year, while non-gaming revenue also recorded an increase of 26 percent. Revenue from table games didn’t experience similar growth, but it did manage to reach a figure that is just 5% lower than what the company used to generate before the novel coronavirus pandemic hit.

The Star Gold Coast was the best performing venue during the June quarter, recording a revenue increase of 48 percent compared to the last quarter before Covid impacted the business. The good results were mainly due to a significant recovery in domestic tourism, along with the opening of The Dorsett Gold Coast Hotel and The Star Residences.

The Star Entertainment Group also reported that its facilities in Brisbane and Sydney also performed well, with a revenue rise of 13 percent compared to pre-pandemic figures in Brisbane and a return to pre-Covid levels in Sydney.

Despite the encouraging results, The Star is still way off the revenue figures it recorded in the 2019 fiscal year. During those last twelve months before the pandemic the company generated gross revenue of 2.5 billion Australian dollars, while in the 2022 fiscal year it only managed to generate 1.53 billion Australian dollars.

Moreover, during the 2020-2021 fiscal year the company generated revenue of 1.56 billion Australian dollars, so this year’s results represent a slight decrease. The 2020-2021 financial year brought a return to profitability for the Australian company, but the results were still far off what it used to generate before the pandemic.

Last month, Star Entertainment announced the appointment of Robert Cooke as its new Chief Executive Officer after Matt Bekier, the former Managing Director and Chief Executive Officer, left the company following allegations of misconduct against the casino operator.

SOURCE: . Inside Asian Gaming. July 31, 2022.