Star Entertainment Group anticipates reaching a revised income of A$1.53 billion (US$1.07 billion, £878.9 million, €1.04 billion) for its fiscal year 2022, notwithstanding facing rigorous examination of its permits. The firm anticipates achieving this objective due to a robust rebound in the local market during the concluding quarter.
In a market update, Star Entertainment Group indicated that its revenue in Australia had risen by 11% to A$512 million in the three months leading up to the end of June, in comparison to pre-pandemic levels.
Star Entertainment Group stated that slot machine income expanded by 28% in the quarter, while non-gaming revenue also increased by 26%. Although Australian venues have reopened, domestic table game revenue has not fully recovered but is nearing 95% of pre-pandemic levels.
The operator specifically emphasized its Star Gold Coast property, which witnessed domestic revenue rise by 48% in comparison to pre-pandemic levels. Star Entertainment Group attributed this to the rebound of domestic tourism and the inauguration of the Dorsett Gold Coast hotel and The Star Residences this year.
Star Entertainment Group’s casino in Brisbane observed domestic revenue increase by 13% in comparison to pre-pandemic levels, while domestic revenue at The Star Sydney has returned to pre-pandemic levels.
In spite of this, the Star Group highlighted that its early 2022 performance was affected by COVID-19 related actions, including property shutdowns, operational limitations, and border closures, which will be reflected in its annual financial report.
The operator also mentioned that costs associated with regulatory examinations and increased investment in regulatory and compliance roles will also be reflected in its results, which will be released on August 22.
The evaluation of Star Sydney’s operations will conclude at the end of August, while it was also declared in June that an independent review would be conducted into the Star Group’s fitness to hold its casino license in Queensland.
Regarding July’s performance, the Star Group stated that trading had surpassed pre-pandemic levels. The operator observed that trading at its Star Sydney property and its two Queensland locations had both exceeded pre-pandemic levels.
In the meantime, the Star Group also issued an update on its Brisbane Queen’s Wharf integrated resort development project, which is now projected to open in the second half of 2023 due to a series of postponements caused by the pandemic and above-average rainfall in 2022. The facility was initially planned to open in the middle of next year.
The total project cost is anticipated to be around 10% higher than the initial A$2 billion estimate.
The escalating expense of construction materials, a scarcity of workers, disruptions in the supply chain, and project postponements, coupled with the inclusion of capital equipment, have driven the total cost to a staggering £6 billion.
To offset the majority of these expenditures, Star and its joint venture partners have suggested contributing extra equity, in accordance with their existing joint venture holdings.
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