The Star Entertainment Group unveiled its yearly financial report for the fiscal year ending June 30, 2020-21, revealing a total income of A$1.55 billion (US$1.11 billion, £814.4 million, €953.3 million). The company’s operations continued to be affected by the COVID-19 pandemic.
Income experienced a decline of 10.9% compared to the previous year’s financial report for 2019-20.
Domestic gaming income accounted for the largest portion of total income, reaching A$1.36 billion. Domestic gaming income saw an increase of 9.6% compared to the full year 2020. International VIP income amounted to A$9.5 million, experiencing a significant drop of 96.7% due to travel restrictions. Non-gaming and other income totaled A$183.8 million, down 16.4%.
Net income reached A$1.54 billion after subtracting player rebates and commissions (costing A$11.7 million), representing a year-on-year rise of 3.9% from A$1.48 billion.
The Star Entertainment Group’s Sydney branch generated revenue of A$828.2 million, a decrease of 29.1% from the full year 2020. The majority of this revenue (A$458.1 million) originated from domestic table games. Slot machine income amounted to A$277.7 million, and non-gaming activities income was A$77.1 million.
In the previous month, a Star Entertainment Group Sydney branch employee was incarcerated for orchestrating an illegal gambling scheme at the casino, resulting in losses of A$467,000 for the casino.
The company’s Gold Coast branch reported total income of A$381.3 million, an increase of 16.3%.
Automated gambling devices produced the greatest income at $203.9 million, trailed by local table games at $100.8 million. Non-gambling income was $74.5 million.
Brisbane area revenue was $347.6 million, a 38.1% rise. Automated gambling device income was $173.8 million, while local table games and non-gambling activities were $149.5 million and $22.8 million respectively.
Overall revenue across all areas was affected by the COVID-19 pandemic, leading to occasional casino closures.
Player refunds and commission costs fell by 95.5% year-on-year to $11.7 million.
Gaming taxes and fees were $378.7 million, a 0.3% year-on-year increase. Operating costs fell by 10.5% to $740 million. Considering these two expenses, earnings before interest, taxes, depreciation, and amortization (EBITDA) was $426.7 million. This represents a 51.3% year-on-year increase.
Depreciation and amortization costs were $210.5 million, and other expenses were $4.4 million, resulting in earnings before interest and taxes (EBIT) of $211.8 million, a 172.6% increase compared to the full year 2020.
Other costs, including net financing, taxes, and significant projects, totaled $153.9 million. This resulted in a total net profit of $57.9 million, a substantial increase of $152.7 million year-on-year, compared to a loss of $94.8 million the previous year.
The company also released adjusted results, which account for volatility using an average win rate of 1.25% of turnover.
Adjusted total revenue was $1.56 billion, a decrease of 20.8% year-on-year.
The most recent report from Star Entertainment Group reveals that their Sydney site generated a massive $832 million in income. The Gold Coast and Brisbane locations also performed well, bringing in $382 million and $348 million respectively.
Their earnings before interest, taxes, depreciation, and amortization (EBITDA) were a strong $430 million, while earnings before interest and taxes (EBIT) reached $219 million.
“Even with the significant challenges posed by the COVID-19 pandemic, we’re still making progress with our plans,” stated Star Entertainment Group Chairman John O’Neill.
“Our domestic operations are still performing well. We hold valuable long-term permits in prime locations, and we’re making significant progress in transforming our properties into top-tier entertainment destinations.”
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