The Australian land-based gaming enterprise, Star Entertainment Group, announced its total earnings for the fiscal year ending June 30, 2021. The company reported a revenue of A$1.55 billion (£814.4 million/€953.3 million/$1.11 billion), despite ongoing challenges posed by COVID-19 limitations.
Star’s financial report indicated a decrease in revenue, although the company returned to profitability in the 2020-21 fiscal year. Revenue declined by 10.9% compared to the previous fiscal year.
The majority of the company’s total revenue, amounting to $1.36 billion, originated from domestic gambling activities, representing a 9.6% increase from the previous fiscal year. International VIP revenue, however, experienced a significant decline of 96.7% to $9.5 million due to travel restrictions. Non-gaming and other revenue reached $183.8 million, down 16.4%.
After deducting player rebates and commissions, totaling $11.7 million, the net revenue amounted to $1.54 billion, reflecting a year-on-year increase of 3.9% from $1.48 billion.
Star’s Sydney operations generated revenue of $828.2 million, a decrease of 29.1% compared to the previous fiscal year. Domestic table games contributed the largest share of this revenue, reaching $458.1 million. Slot machine revenue amounted to $277.7 million, while non-gaming activities generated $77.1 million.
In the preceding month, a Star Sydney employee was incarcerated for orchestrating an illegal gambling scheme at the casino, resulting in a loss of $467,000 for the establishment.
The company’s Gold Coast operations generated a total revenue of $381.3 million, representing a 16.3% increase.
Automated gaming devices contributed the most to earnings, reaching a total of $203.9 million. This was followed by traditional table games, which brought in $100.8 million. Revenue from non-gaming activities reached $74.5 million.
The Brisbane area generated $347.6 million in income, representing a 38.1% boost. Automated gaming devices produced $173.8 million in revenue, while traditional table games and non-gaming activities generated $149.5 million and $22.8 million, respectively.
The overall revenue in each region was impacted by the COVID-19 outbreak, which resulted in periodic casino closures.
Player rewards and commission expenses saw a significant decrease of 95.5% year-over-year, reaching $11.7 million.
Gaming tax and levy expenses totaled $378.7 million, a slight increase of 0.3% year-over-year. Operating costs saw a reduction of 10.5%, reaching $740 million. Considering these two expenses, earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $426.7 million. This signifies a year-over-year increase of 51.3%.
Depreciation and amortization expenses reached $210.5 million, and other expenses totaled $4.4 million, resulting in earnings before interest and taxes (EBIT) of $211.8 million. This represents a substantial increase of 172.6% compared to the full year 2020.
Other costs, including net financing, taxes, and major projects, amounted to $153.9 million. This resulted in a net profit of $57.9 million, a considerable increase of $152.7 million year-over-year, following a loss of $94.8 million the previous year.
Star Entertainment also released adjusted results, which account for volatility using an average win rate of 1.25% of turnover.
Adjusted total revenue reached $1.56 billion, a decrease of 20.8% year-over-year.
The latest financial report from Star Entertainment Group showcases robust performance across its Australian properties. The Sydney site raked in a staggering $832 million in income, while the Gold Coast and Brisbane locations brought in $382 million and $348 million, respectively.
The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) hit $430 million, with earnings before interest and taxes (EBIT) at $219 million.
John O’Neill, Chairman of Star Entertainment Group, expressed contentment with the company’s achievements, stating, “Despite the unparalleled challenges presented by the COVID-19 outbreak, the Group has continued to implement its strategy exceptionally well.” He further stated, “The long-term outlook for Star’s domestic operations remains positive, bolstered by valuable licenses in prime locations. We are in the final stages of transforming our properties into top-tier entertainment destinations.”