Star Entertainment Group Reveals FY23 Profit; Significantly Reduces Debt

Star Entertainment Group, an Australian-based gambling and entertainment company, revealed yearly earnings on August 29 as business continues to balance and profits grow in every segment, further helping the firm decrease its debts by a large amount.

A slight improvement in profits helped a lot:

The company disclosed a slight improvement in profits in every segment, helping to compensate the discomfort of regulatory limitations on its Sydney business and hard competition from its larger competitor, Crown Resorts, which also began to operate in Sydney in August 2022. In addition, the good news on the rise in profits was a breath of fresh air for investors, with company’s stakes up 4.2% to A$0.99 at 0011 GMT, in contrast to the benchmark index’s 0.3% jump.

Furthermore, it unveiled gross income of A$1.87 billion ($1.20 billion) for the 12 months ended June 30, up 22% from 2022. However, it has also been able to “refinance its excizting debt” via cost-cutting initiatives and other business endeavors and has managed to now, as of June 30, have the firm’s net debt at A$596 million, a powerful cut from A$1.11 billion that it had at the end of last year.

Net revenue after tax:

Star made sure to publish a net profit of A$41 million for FY23, just after tax. However, the firm had to incur an “impairment charge” of A$2.48 billion, net of tax, as it had to offload the important items from the fluctuating business at the aforementioned Sydney business, in addition to legal and regulatory costs.

Making plans for FY24:

Additionally, the company forecast capital expenditure for the coming 2024 to be between A$100 million and A$120 million, saying it intends “to provide an update on the debt refinancing process in the months ahead.” Furthermore, the firm succeeded to come up with the solution to the New South Vales casino levy rise, with the latest arrangements effecting A$10 million in FY24.

About:

Star Entertainment Group is an ASX-listed firm that owns and manages The Star Gold Coast, The Star Sydney and Treasury Brisbane. In addition to these, it also manages the Exhibition Center and Gold Coast Convention on behalf of the Queensland Government.

Additionally, it is devoted to “optimizing its properties, supporting the communities in which they operate, and capitalizing on the opportunities presented by its world-class locations in Sydney, Brisbane and on the Gold Coast.”  Its vision to become flagship integrated resort firm in Australia is supported by “multi-billion-dollar transformational projects planned or in progress across its properties.”