The Star Entertainment Group announced a net deficit of A$65.6 million (\u00a334.7 million\/\u20ac41.6 million\/$47.2 million) for the initial six months of its 2021-22 fiscal period, concluding on December 31, 2021. This was attributed to a 22.1% decrease in income resulting from casino closures and other actions associated with the COVID-19 outbreak.<\/p>\n
The group’s total income for the six-month period ending December 31, 2021, was A$577.1 million, a decline from A$741.4 million in the preceding year.<\/p>\n
The Star Entertainment Group’s Sydney property was shut down from June 26 to October 11, while its two Queensland locations were also closed for brief intervals during the first half of the year. The operator also indicated that shifting social distancing requirements, domestic border closures, and other pandemic-related health regulations impacted domestic travel, while international border closures continued to “significantly” reduce its international VIP operations.<\/p>\n
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for its Sydney business decreased by 39.5% year-over-year to A$240.3 million, while Brisbane income fell by 11.1% to A$160.6 million. However, despite coronavirus measures and restrictions, Gold Coast income increased by 5.1% to A$180.4 million, driven by the reopening of hotel venues within its casino property. <\/p>\n
The gaming company, Star Entertainment, is facing regulatory difficulties, including claims that it disregarded a KPMG report regarding anti-money laundering (AML) violations. Star Entertainment initially responded by stating that media accounts were “untrue” and later issued a more detailed statement asserting its commitment to enhancing its AML compliance.<\/p>\n
Last month, Australia’s Transaction Reports and Analysis Centre (Austrac) announced it would expand its investigation into Star Sydney’s financial violations to assess other entities within the organization.<\/p>\n
Also in the first quarter, Star Entertainment withdrew its indicative proposal to combine with rival Crown Resorts, which was made last May, aiming to create a joint venture valued at approximately A$12 billion. The withdrawal was attributed to concerns raised by the ongoing regulatory process involving Crown Resorts in Victoria.<\/p>\n
Turning to financial performance, while government fees and taxes decreased by 20.8% to A$145.8 million, other expenses increased. Staff costs rose considerably by 26.3% to A$277.4 million, cost of goods sold increased slightly by 5.9% to A$28.6 million, advertising and promotional costs also rose by 5.9% to A$24.9 million, and other expenses increased by 28.1% to A$56.6 million.<\/p>\n
This resulted in a pre-tax loss of A$103.9 million, including A$25 million in financial charges, compared to a profit of A$73.7 million in the same period in FY2020-21. Earnings before interest, taxes, depreciation and amortization (EBITDA) also declined by 86.8% to A$30.7 million.<\/p>\n
Star Entertainment did receive A$29. <\/p>\n
Although the company received a sizable tax break of A$7 million in the initial six months of the year to lessen the effects of shutdowns and other limitations, they still reported a net loss of A$74.2 million for the period. This stands in stark contrast to the A$49.7 million profit recorded during the same period last year.<\/p>\n
Star also presented modified financial results to accurately reflect the fundamental performance of their operations. This adjustment eliminates the inherent unpredictability associated with win rates in their international VIP rebate business. These adjusted figures were calculated using actual turnover, taxes, and revenue share commissions based on an average win rate of 1.35%, excluding significant projects.<\/p>\n
Adjusted gross revenue experienced a decline of 21.5%, reaching A$575.8 million. EBITDA also saw a substantial drop of 87.0%, settling at A$29.4 million. The company ultimately reported a net loss of A$73.7 million.<\/p>\n
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The Star Entertainment Group announced a net deficit of A$65.6 million (\u00a334.7 million\/\u20ac41.6 million\/$47.2 million) for the initial six months of its 2021-22 fiscal period, concluding on December 31, 2021. This was attributed to a 22.1% decrease in income resulting from casino closures and other actions associated with the COVID-19 outbreak. The group’s total income […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n