Australian casino operator Star Entertainment Group has announced its full year results for FY23 showing a net loss of AU$2.44 billion ($1.57 billion/€1.45 billion) for the reporting period.
Results heavily impacted by regulatory actions
Despite the overall net loss, Star reported improved revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) that were higher than previously announced guidance. The report reveals a 22% year-on-year increase increase in gross revenue to AU$1.87 billion ($1.20 billion/€1.11 billion) and a 34% increase in EBITDA to AU$317 million ($204 million/€188.7 million).
According to the announcement, the company’s overall profits were heavily impacted by regulatory action taken against Star following inquiries into operations at its properties in both New South Wales and Queensland.
Star Entertainment Reports Net Loss of AU$2.44 Billion for FY23Star FY23 key highlights
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Star Entertainment Reports Net Loss of AU$2.44 Billion for FY23
- Non-cash impairment for FY23 of AU$2.17 billion ($1.40 billion/€1.29 billion) Star Entertainment Reports Net Loss of AU$2.44 Billion for FY23
- Debt restructuring costs of AU$54 million ($35 million/€32.1 million)
- redundancy costs of AU$16 million ($10.3 million/€9.5 million)
- Expected impact from NSW casino duty rate projected as AU$10 million ($10.3 million/€5.9 million) in FY24
- Stable performance – early H1 FY24 indicates trading broadly in line with Q4 FY23
Star noted that its Sydney property continues to be impacted by an increase in numbers of excluded guests as a result of tighter controls and operating restrictions while the opening of Crown Sydney has also led to increased competition. However, despite these obstacles, gross revenue at The Star Sydney grew by 26% year-on-year to AU$984 million ($633 million/€586 million) while EBITDA by 57% to AU$127 million ($82 million/€75.6 million).
Star Entertainment Reports Net Loss of AU$2.44 Billion for FY23Meanwhile Treasury Brisbane saw a revenue increase of 15% to AU$375 million ($241 million/€223.3 million) while EBITDA grew by 29% to AU$83 million ($53 million/€49.4 million).
Speaking of the report Star CEO and Managing Director, Robbie Cooke said:
Star Entertainment Reports Net Loss of AU$2.44 Billion for FY23As a team we are determined to earn back the trust and confidence of our community including our regulators, governments, shareholders, employees and guests. We fully understand the responsibility involved in holding our licenses and are committed to transforming our leadership and culture. This journey has started and we know there is still a lot to be done.
Remediation is our number one priority. We have commenced the uplift in our risk management, safer gambling and AML capability and are starting to embed greater accountability and more robust governance. We have invested in enhancing our control environments and are operationalizing and embedding these controls. We are improving our financial crime management and our overall approach to harm minimization. Our remediation program will track and hold us accountable to the multi-year program we are committed to delivering.”
Image credit: llee_wu / CC BY-ND 2.0
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.