In Australia and local casino operator The Star Entertainment Group Limited reportedly recorded a net loss of about $53.2 million for the final six months of last year owing to coronavirus-related capacity restrictions and property closures.
According to a report from Inside Asian Gaming, this tally equated to a decline of some 249% year-on-year as the company’s flagship The Star Sydney property remained shuttered for the four months to October 11. The source detailed that the Sydney-listed firm also saw its aggregated gross revenues for the six-month period fall by 23% to approximately $418 million as its associated earnings before interest, tax, depreciation and amortization slumped by an even more stark 87% to just $22.3 million.
Desired debut:
The Star Entertainment Group Limited is also responsible for eastern Australia’s The Star Gold Coast and Treasury Brisbane venues and is still hoping to be able to premiere its $2.3 billion Queens Wharf Brisbane development by the summer of next year. This latter project is to sit on a roughly 33-acre downtown Brisbane site and feature four six-star hotels, 50 restaurants and up to 2,000 residential apartments alongside a 4.1 million sq ft around-the-clock casino offering a selection of more than 2,500 slots as well as hundreds of gaming tables.
High-value hex:
John O’Neill serves as the Chairman for The Star Entertainment Group Limited and he reportedly used the press release to disclose that his company had experienced a decrease of 89% year-on-year in half-year VIP gaming revenues to a mere $1.3 million as associated domestic receipts fell by 24.3% to around $358.3 million. Nevertheless, the experienced campaigner purportedly sounded a note of optimism in noting that his firm had moreover seen its non-gaming returns for the six-month term increase slightly to hit $6.1 million.
Comprehensive collapse:
However, Inside Asian Gaming reported that the lengthy closure of The Star Sydney saw this prestigious property’s gross half-year revenues plummet by 39.5% year-on-year to $172.9 million as its accompanying earnings before interest, tax, depreciation and amortization came in at a loss of $17.3 million. Adding to the bad news and associated receipts from the Treasury Brisbane venue purportedly tumbled by 11.1% to $115.5 million while The Star Gold Coast experienced a 5.1% resurgence to $129.8 million although its earnings slumped by 50.6% to $18.6 million.
Reportedly read a statement from O’Neill…
“The group continued executing its strategy well in the context of the extraordinary coronavirus-related challenges. The fundamental earning prospects for The Star Entertainment Group Limited’s domestic business remain attractive. They are underpinned by valuable long-term licences in compelling locations while the transformation of our properties into globally competitive integrated resorts is nearing completion.”