Star Entertainment Reports 15 Percent Profit Rise
Australiaמ casino operator, Star Entertainment Group, has posted its financial results for the 2015-16 financial year, showing a 14.9 percent increase in net profits to $194.4 million and a 6 percent increase in revenue to $2.27 billion.
The company reported that total earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 7.5 percent to $488.8 million, while gross revenue rose 4.4 percent to $2.36 billion. Gaming revenue rose 6.8 percent to $1.51 billion compared to the same time last year and the group reported “strong growth” in their Australian business.
Star’s profits exceeded the expectations of analysts, which they attributed to “a combination of improved marketing, loyalty program, sales activity, product offering and stronger macro-economic conditions.”
In addition, their International VIP business performed strongly with a 7 percent increase in turnover across their three properties to a record $49.5 billion.
Their Jupiters Casino in Queensland underwent significant changes this past year and according to Matt Bekier, Star Entertainment chief executive, customers had responded well to the new VIP salons, upgraded hotel rooms and new restaurant. Their flagship casino in Sydney experienced an increase in earnings before interest, tax, depreciation and amortisation of 17.4 percent to $382 million.
Star Sydney is soon to lose its monopoly in Sydney with the construction of a luxury casino resort in Barangaroo across the harbour that is planned to be opened in 2021 by Crown Resorts. As a result, Star has been regaining market share to become more competitive in terms of mass market and high-roller VIP gamblers from China. Star has been in discussions with Chinese tour operators to target Asian travellers and has been involved in a number of building projects around the country.
March 23, 2017