The Star Entertainment Group’s three casinos are witnessing a decline in high-roller activity as the company’s former and current senior executives gear up for another public inquiry regarding the future of its Sydney casino.
In a mixed trading update to the ASX on Friday, The Star reported a 20 percent drop in premium gaming revenue across its properties in Sydney, Brisbane, and the Gold Coast during the March quarter. This decrease in high-roller participation contributed to an overall revenue decline of 5 percent compared to the same period last year, amounting to $133.6 million. However, revenue from the main gaming floors, primarily housing poker machines, experienced a 5 percent increase during the quarter.
Despite these challenges, The Star’s statutory loss after tax for the quarter improved to $6.8 million, a significant improvement from the $50 million loss recorded during the same period in 2023. This quarterly loss includes $10 million in significant items, such as provisions for a yet-to-be-determined AUSTRAC fine and legal costs associated with the upcoming inquiry.
The company reported normalized earnings before interest, tax, depreciation, and amortization (EBITDA) of $38 million for the quarter, providing a clearer insight into the group’s underlying performance.
In its update, The Star emphasized its commitment to cost control and highlighted its focus on investing appropriately to enhance the control environment.
Furthermore, The Star informed the market that the sale of its Treasury casino, hotel, and car park is progressing smoothly, while the opening of Queens Wharf Brisbane remains on track for August.
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