Star Entertainment Group releases FY2022 results

The Star Entertainment Group has released its full-year results, the company confirmed in an investor statement. The company focused on several key points in the update, including its renewal program, executive and Board appointments, balance sheet results, asset sales,overall earnings,and the impact COVID-19 has had on the Group’s bottom line.

All in all, Star Entertainment stood strong although the Group acknowledged that its recovery was disrupted by the COVID-19 pandemic, and lingering fears and challenges are still associated with it. The company reported normalized EBITDA and a net loss of $237m and $32m respectively.

Statutory EBITDA was set at $239m, the company’s financial documents said. However, the Group acknowledged that it had faced difficulties stemming from regulatory reviews, operating restrictions, border shutdowns, and temporary closures of property over the surveyed period. All of this contributed to anemic growth and called for a change in tact and strategy.

The Star Entertainment Group used the current situation to also draw lessons, launching an ambitious Renewal Program which is designed to assist its business to develop more sustainable models. The Group acknowledged the need to rebuild investors' and stakeholders’ confidence and trust and said that this will be part of the company’s long-term efforts.

The update also reiterated the appointment of Robbie Cooke as Managing Director and Chief Executive Officer and that of Scott Wharton as CEO for the Star Sydney and Group Head of Transformation. These important appointments should see The Star Entertainment win the good graces of regulators despite a thorough review of past questionable practices.

The board also welcomed several new appointees, including Anne Ward, David Foster, and not least, Michael Issenberg. The Group confirmed that substantial liquidity of $513m in cash and undrawn facilities has been achieved as well. In the meantime, the Group continues to face regulatory pressure in Queensland, Australia and it was found "unfit to hold a license" in New South Wales.

The Group acknowledged these challenges and offered a detailed breakdown of all its individual properties, including The Star Sydney, The Star Gold Coast, and Brisbane. As part of the trading update of the report, the company said that revenue trends from Q4 FY2022 continue into the first half of FY2023. Sydney has been able to see pre-COVID levels of domestic revenue. Gold Coats boasted a 26% increase in domestic revenue and Brisbane added 18% in domestic revenue as well.

This is good news for the Group as it will undoubtedly seek to push stronger results from this point on. The lingering fears of new shutdowns remain an ever-present danger, but the gambling sector and governments have learned not to act out of fear but approach the issue reasonably.

Image credit: Unsplash.com