The Star Entertainment Group has reported statutory revenue of AU$750m (US$581.6m) for the first-half of the 2020/2021 financial year that ended 31 December 2020.
EBITDA was AU$233m, a 4% drop, and net profit after tax declined by 33% to AU$51m. Group’s normalised EBITDA margin improved from 24% to 30%. Operating expenses was down 40% to AU$324m. Net debt was reduced by AU$151m during H1 2021.
The group stated the financials were impacted by Covid-19 related social distancing restrictions and border closures. However, despite the setbacks, Gold Coast slots revenue was up 8% and Brisbane saw an increase of 7%.
Revenues in the Sydney casino declined by 51% to AU$390m. Revenue from VIP dropped by 95% to AU$8m. The venue’s EBITDA was AU$107m, a 44% decline. Gold Coast reported a 48% decline in revenue to AU$172m. Domestic revenue was AU$170m, while the VIP sector only reported AU$1m, a 99% year-on-year decline. According to the statement, Brisbane casino was less impacted by operating restrictions and reported AU$180m in revenues, a 3% decline.
“The group continued executing its growth strategy despite the extraordinary challenges and significant impacts of COVID-19,” said chairman John O’Neill. “The fundamental earnings prospects for The Star’s domestic business remain unchanged.”
The statement noted that last week, the group broke ground on the construction of a further tower at The Star Gold Coast. The investment cost AU$400m and the mixed-use tower will have 63 floors, 210 rooms and 457 apartments. It should be completed in 2022.