Brisbane and Gold Coast Shine For Star Entertainment
The Star Entertainment annual report makes interesting reading, and shows the knock-on effects of the COVID-19 pandemic. Revenue generated at Star’s Sydney property fell almost 30% but increase at both Gold Coast and Brisbane, doing so substantially.
Star Sydney is seen as the company’s flagship casino and hotel, but COVID-19 restrictions continue forcing closures. The casino is not operating at full capacity even when the government allows customers.
Statutory revenue at Star Sydney fell 29.2% to $828.2 billion with the Earnings Before Interest, Taxes, Depreciations, and Amortization (EBIDTA) plummeted 29.7% to $199.8 million.
It was a totally different story for the Gold Coast and Brisbane properties. All the reported figures increased year on year. For example, Gross revenue at Star Gold Coast increased 16.3% to $381.3 million. It was a similar story at Brisbane, increasing 38.2% to $347.6 million.
EBITDA soared for both non-Sydney venues, too. Gold Coast reported a 308.7% increase to $112.5 million and Brisbane 120.8% rise to 114.4%.
Overall, Star Entertainment’s gross revenue fell 11.0% to $1.5571 billion. However, EBITDA rose 51.3% to $426.7 million, with net profit after tax weighing in at $57.9 million. Star made a $94.6 million loss during the 2020 financial year.
Brisbane and Gold Coast Projects Continues
Star Entertainment continues improving all three of its properties, but it is Brisbane that catches the eye. Queen’s Wharf Brisbane is anticipated to progressively open in the first half of 2023. This project comes with a $3.6 billion cost attached.
The Dorsett Hotel and apartments tower at Gold Coast will open during the 2022 financial year.
Matt Bekier, the Managing Director and Chief Executive Officer of The Star Entertainment Group, is delighted with the performance at Brisbane and Gold Coast. The $3,064,197 remuneration package he received last year helps his positivity.
“I continue to be inspired by our 8,000-plus team members. They are committed to excellence, to doing the right thing, and acting in a collaborating manner that is the essence of true teamwork. Even more impressive has been the extraordinary agility and enthusiasm they have shown in the face of on-again, off-again operations. The diligence they displayed in closing properties at short notice, then returning when possible to safely reopen for our guests has been uplifting.”
“As a business too we have show an ability to weather the COVID-19 storm. Normalised Group revenue was $1.56 billion. There were also exceptional highlights in 2HFT2021 during a period of re-opening with reduced restrictions. The Gold Coast and Brisbane teams achieved some record results.”
“Despite the impacts of the pandemic, construction on transformational projects at Queen’s Wharf Brisbane and the Gold Coast continued.”
Updates Responsible Gambling Procedures
Star used the publishing of its annual report to unveil details of its updated responsible gambling procedures. Those figures revealed Star has a list of excluded patrons weighing in at 15,107. Some 33.5% of those excluded did so via self-exclusion. 43% were excluded by Star’s venues with 7% of exclusions being due to problem gambling.
The report shows Star gives financial support to gambling charities. It has donated more than $100 million to the Queensland Gambling Community Benefit Fund since 1987. Furthermore, it donated $14.8 million to the Responsible Gambling Fund (NSW) in FY2021.
Star plans a three-pronged attack to combat problem gambling. The three initiatives fully come into play from FY2022.
Facial recognition is in place to prevent breaches of the exclusion policies. In addition, Star performs detailed data analysis which it combines with other data to ensure the safety of its patrons. Lastly, Star is developing new rules, policies, and capabilities to allow it to adopt the best practices for allowing guests time on its machines and in its games. A cap of 12 hours in a gaming area (not continuous 12-hours) is in place currently. It is analysing data before publishing new rules regarding continuous play.
