Star earnings impacted by shutdowns

The Star Entertainment Group said its earnings were significantly impacted by property shutdowns and Covid-19 related operating restrictions.

In an earnings filing the company reported a normalised net loss of A$74m in the half-year period. Normalised EBITDA was $29m, down 87 per cent from the prior-year period. Normalised group revenue was $580m.

The Star said that Covid-19 related shutdowns, border closures and operating restrictions materially impacted revenues and earnings. However, it noted strong revenue growth upon reopening in its Sydney casino and stable revenue at its Queensland casinos.

Operating expenses were up five per cent, reflecting Covid-19 related inefficiencies and investment in staff to position properties for reopening. The Star had continued to pay its staff wages during the Covid-19 lockdown for several months in Sydney.

Chairman John O’Neill said that the fundamental earnings prospects for The Star’s domestic business remain attractive.

Source: Asia Gaming Brief