The revenues of the Star Entertainment Group were recovered

The revenues of the Star Entertainment Group were recovered

The Star Entertainment Group filed with the Australian Securities Exchange (AUS) today a trading update on its expected revenue in the fiscal year 2022, balance sheet position and early fiscal year 2023 performance.

The results for FY2022 were not audited

The Star Entertainment Group expects normalized revenue to be more than $1 billion for the 12 months ended June 30, 2022. The final figure is still to be confirmed by the company’s external auditors when the audit of its fiscal year 2022 financial statements is complete.

According to The Star, revenue from domestic operations rebounded to reach $512 million in the June 30, 2022, quarter, up 11 percent from the pre-pandemic levels.

Domestic slot operations contributed 28% of the revenue increase, followed closely by non-gaming revenue which contributed 26% more than in 2019. Domestic table revenue came out within 5% of the pre-pandemic levels.

Due to the recovery in domestic tourism and the opening of The Dorsett Gold Coast Hotel and The Star Residences, The Star Gold Coast posted the strongest growth, up 48% on the current levels. The pre-pandemic revenues of the Star’s property in Brisbane were up 13%, while the pre-pandemic revenues of the Star’s property in Sydney were up 100%.

The Star warned investors that the full year results will be impacted by the first half net loss due to the property closings, operating restrictions, border closings, and the additional investments and costs due to the regulatory reviews. The group’s audited fiscal year results will be released on August 22, 2022.

The Star Entertainment Group had a balance sheet of $513 million and had cash on hand and undrawn credit facilities of $300.5 million. Net debt is almost a billion dollars.

The Star stated that the early performance signaled a continuation of the trend as trading in July is still above pre-pandemic levels. An improved performance from table games at The Star Sydney helped the property climb above the current levels where it is currently trading, while properties in Queensland are maintaining their strong performance from the previous fiscal year.

There is an IRD Update at Queen’s Wharf

The Queen’s Wharf Brisbane Integrated Resort Development is expected to see a delayed opening due to the impact of the Pandemic and higher than average rainfall in the fiscal year 2022, according to an update provided by The Star.

A number of factors, including the rising costs of construction materials, labor shortages, supply chain challenges, and the inclusion of capital equipment required for the opening of the property, the Star said that total costs are now projected to be up around 10% on its previous guidance of AU$ 2.6 billion. The costs of pre- opening and operational readiness are not included in the estimate.

The Star and its partners in the joint venture, the Far East Consortium and Chow Tai Fook, will contribute additional equity to fund the cost escalation.

Summary:

The Star Entertainment Group expects normalized revenue to be more than $1 billion for the 12 months ended June 30, 2022. Revenue from domestic operations recovered strongly to reach $512 million, an increase of $11 million from the pre-pandemic levels. Domestic slot operations contributed 28% of the revenue increase, followed closely by non-gaming revenue which contributed 26% more than in 2019.