The fallout from the arrests of 19 Crown Resorts staff in mainland China last year continues to have far-reaching affects with its Australian rival Star Entertainment Group suffering an 18.6% decline in normalized international VIP revenue to AU$554.7 million and an 11.1% fall in normalized profit to AU$214.5 million for the full year ended 30 June 2017.
But the results proved bitter-sweet for the Australian casino operator with a high VIP win rate and strong revenue growth across its Sydney and Gold Coast properties. On a statutory basis – without win rates taken into account – profit for the group soared 36.6% to AU$264.4 million while statutory international VIP rose 7.3% on the back of a 1.59% win rate.
With Star having pulled back from China following the Crown arrests, CEO and Managing Director Matt Bekier said the company was focused on attracting VIPs from other international markets.
“Our strategy of diversifying international revenues and providing and moore compelling high-end tourism proposition for VIP and premium mass customers is showing signs of good growth,” he said in Star’s earnings report.
“We are also expanding our source markets and sales teams to cover a broader international footprint – with premium mass guests visiting from 13 countries in FY2017 – and we continue to assess the North Asian VIP business.
“Pleasingly, collections remained strong reflecting continuing effective credit processes.”
Statutory EBITDA increased 19.9% or the year to AU$586.2 million with normalized EBITDA down 7.4% to AU$515.1 million.
Normalized revenue for the year fell 8.5% in Sydney to AU$1.6 billion and normalized EBITDA 16% to AU$320.6 million, with the group’s Queensland properties seeing normalized revenue rise 7.9% to AU$741.8 million.
But Star reported stronger growth in the six months to 30 June 2017 as it continues to adjust to market conditions.
“The group continues to focus on executing its strategy of pursuing capital expansion opportunities while improving operational results, including the opening of the new six-star hotel at The Star Gold Coast with its signature gaming and food and beverage offerings in advance of the April 2018 Commonwealth Games,” Bekier said.
RelatedPosts
