Star Entertainment records a normalized loss of $32 million

  • Monday 22 August, 2022
Star Entertainment records a normalized loss of $32 million

Star Entertainment Group has recently published its financial review covering the past financial year, showing losses amid pandemic restrictions.

One of Australia’s largest gambling and hospitality firms, Star Entertainment Group, has recently issued its financial analysis covering the fiscal year from the 1st of July the year prior to the 30th of June, 2022. The main figures are a normalized loss of over 30 million Australian dollars caused by halted operations at several of the company’s establishments due to the Covid-19 pandemic.

Starting off with revenue, the figure was down by 1.6%, now at more than 1.5 billion Australian dollars. EBITDA was a statistic where the corporation lost quite a few percentage points, as it went down nearly 45% to just shy of 237 million Australian dollars. Earnings before taxes and interest, however, had the biggest downturn, going down by 87% to 28.4 million Australian dollars. A couple of other low-profile corporate expenses later the company recorded a net loss of over 32 million Australian dollars.

Looking at the numbers thoroughly, the turbulence was caused by massive disruptions at the group’s properties. While all of their casinos and resorts experienced shutdowns due to the pandemic, the bulk of the trouble was focused at The Star Sydney, which was closed for over 3 months. The establishments in Gold Coast and Brisbane were shut down for 11 days and 12 days respectively, making for a combined downtime of more than 4 months for the firm.

Star Entertainment records a normalized loss of $32 million
The Star Entertainment Group

Breaking down the numbers for each of the business’s properties, the one in Sydney evidently took the majority of the impact, as net loss before taxes and interest amounted to over 35 million Australian dollars, a staggering 140% decrease. Despite that, the gross revenue at the place was down by only 6%, signifying a strong momentum to grow back in the absence of further pandemic-related closures.

The two other casinos experienced something similar, although not to the same degree. The Star Gold Coast experienced a drop in earnings before interest and taxes of almost 50%, now recorded at 27 million Australian dollars, despite getting a bump in gross revenue to the tune of 11%. The one in Brisbane experienced a loss of 56% in the same statistic, although it lost earnings before taxes and interest by the same 6% as the property in Sydney.

Despite all the negative figures, the firm is still going strong, as evidenced by the respectable gross revenue numbers at its establishments. Net debt was recorded at 1.15 billion Australian dollars, down by a small but still significant 2%. Additionally, the company saw an increase in liquid assets, as its reserve of cash and cash equivalents are now sitting at about 82 million Australian dollars, in contrast to the 68 million recorded at the end of the last financial year.

Lastly, the business announced that there will be no dividend payout this time around due to all the hardships discussed above. As a result of that and all the other turbulence experienced, the organization’s earnings per share took a massive plunge of over 440%, going from last fiscal year’s 6.1 cents earned per share to a loss of 21 cents this year.

At the end of the document, the company stayed bullish, citing its revenue examination during times of eased restrictions, clearly showing that the corporation would excel in the absence of pandemic-induced travel limitations and lockdowns. They even showed a potential to exceed pre-pandemic periods given healthy operating conditions.