Australian casino operator The Star Entertainment Group Limited has released its consolidated financial results for the year to the end of June showing that its annual net profit had improved by 36% year-on-year to hit $208.8 million.
Sydney-listed The Star Entertainment Group Limited is responsible for The Star Sydney, which overlooks Darling Harbour near the center of Australia’s largest city, along with Queensland’s Jupiters Hotel and Casino Gold Coast and explained that its annual results had been helped by these properties posting “strong” second-quarter revenue growth.
The Star Entertainment Group Limited, which also runs The Treasury Casino and Hotel in Brisbane and is in the midst of planning a $1.9 billion casino, hotel and entertainment project for that city’s Queen’s Wharf precinct, additionally cited its “effective international diversification into global VIP rebate and premium mass” as a reason for its most recent fiscal success along with “continued cost discipline and efficiency improvements”.
However, the firm reported that its net profit after tax on a normalized basis had dropped by 11.1% year-on-year to $169.4 million despite a 19.9% rise in annual earnings before interest, tax, depreciation and amortization to $463.1 million.
“[Fiscal year 2017] saw further advancement in the group’s strategy of investing in our core domestic assets and diversifying our international business,” read a statement from John O’Neill, Chairman for The Star Entertainment Group Limited. “The gaming and non-gaming offerings at our Sydney and Gold Coast properties have been improved following the completion of major capital works. Initial responses from our customers to the enhanced and new assets have been pleasing.”
The Star Entertainment Group Limited moreover stated that its annual gross revenues had reached $1.92 billion, which was a 3.1% swell year-on-year on a statutory basis, helped by a 2% boost in domestic gaming takings to $1.22 billion as non-gaming revenues remained relatively static at $196 million.
“Our strategy of diversifying international revenues and providing a more compelling high-end tourism proposition for VIP and premium mass customers is showing signs of good growth,” read a statement from Matt Bekier, Managing Director and Chief Executive Officer for The Star Entertainment Group Limited. “We are also expanding our source markets and sales teams to cover a broader international footprint with premium mass guests visiting from 13 countries in fiscal year 2017 and we continue to assess the North Asian VIP business. Pleasingly, collections remained strong reflecting continuing effective credit processes.”