Mixed Results For H1 At Star Entertainment
Australian casino operator Star Entertainment had a mixed bag of results for the half yearly report, revenues for H1 saw a rise of 15.9% to $1.36 billion ($1.07 billion). However the profit on the revenue rise did not materialise as their VIP customers had better than expected results.
In the companies International VIP section of business the win rate was 1.06% compared to 1.62% for the same period last year. Profit in total after tax came in for the half year marker at $120 million which is a rise of 12.4% but with one off costs such as debt restructuring the company posted a drop of 77% from last year to $33 million.
Matt Bekier the CEO and Managing Director of Star Entertainment said, “We continue to moderate the reliance on North Asian visitation, and our expansion into other international markets has been supported by the bolstering of sales teams to cover a larger and more balanced footprint.”
“The start to the second half of FY2018 has been mixed,” Bekier said. “Direct comparisons with the prior corresponding period are difficult given the different timings of Lunar New Year and the relatively short period of trading. We are seeing pleasing performances in the Queensland properties and continued strength in the international business. Trading in Sydney has been softer than expected in the early parts of this year.”
“The full year FY2018 result may be impacted by several factors (which may be material in nature) including general macro-economic conditions, potential hold and win rate volatility in the private gaming room and International VIP Rebate business, level of debt or provisions, success of the Group’s marketing programs and any uncertainty related to the regulatory environment.”
