The Star Entertainment Group anticipates generating $1.53 billion in income for the year 2022. This is a substantial figure, particularly given the close scrutiny of the company’s licenses. Nevertheless, their operations in Australia performed exceptionally well during the final quarter of the year.
The company reported that its Australian operations generated $512 million in the last three months, representing an 11% increase compared to pre-pandemic levels. This is a positive indication for the company’s future prospects.
The company also noted that its slot machines experienced a 28% surge in revenue during the final quarter, while its non-gaming ventures recorded a 26% increase. Although casinos in Australia have reopened, table games have not yet fully recovered to pre-pandemic levels, but they are nearing that point.
The company is particularly pleased with the performance of its Gold Coast casino, which saw a 48% increase in revenue compared to pre-pandemic levels. They attribute this growth to increased domestic travel and the opening of a new hotel and apartment complex this year.
Their Brisbane casino also performed well, generating 13% more revenue than before the pandemic. Their Sydney casino has returned to its pre-pandemic revenue levels.
In spite of this, Star Entertainment Group indicated that its early 2022 performance was affected by property shutdowns, operational constraints, and border closure measures brought on by the COVID-19 outbreak, which will be reflected in its annual financial report.
The company also stated that costs associated with regulatory examination, as well as increased investment in its regulatory and compliance departments, will also be reflected in its financial results, which will be released on August 22.
The assessment of Star Sydney operations will be finished by the end of August, while in June it was also declared that an independent review would be conducted into the suitability of Star Entertainment Group’s possession of casino licenses in Queensland.
Concerning July’s performance, Star Entertainment Group stated that business had surpassed pre-pandemic levels. The company noted that business at its Star Sydney property, as well as at its two Queensland locations, had exceeded pre-pandemic levels.
Meanwhile, Star Entertainment Group also provided an update on its Queen’s Wharf Brisbane integrated resort development, which is expected to open in the latter half of 2023, after a series of postponements due to the pandemic and above-average rainfall in 2022. The facility was initially scheduled to open in the middle of 2023.
The total cost of the project is expected to be approximately 10% higher than the initial A$2 billion estimate.
In light of escalating construction material costs, workforce scarcity, supply chain disruptions and project postponements, coupled with capital equipment expenditures, a total of six billion pounds sterling is required.
Star and its joint venture associates suggest financing the majority of the expense through supplementary equity investment, which will be determined by existing joint venture holdings.
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