Star Group provides 2023 update

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The Star Entertainment Group has provided an update on operating conditions and outlook for the remainder of the 2023 financial year.


As disclosed in November 2022, 1H FY23 earnings for the Austsralia-based casino operator have been impacted by operational changes arising from the Bell and Gotterson Reviews, a step-up in remediation costs and increased competition in Sydney.

While The Star’s Queensland casinos performed strongly in the period, the operating environment for The Star Sydney has been more challenging.

The Star Gold Coast domestic revenue was up 30 per cent on pre-Covid levels, achieving its highest revenue result on record.

Treasury Brisbane domestic revenue was up nine per cent on pre-Covid levels, with record performance across slots, main gaming floor tables and hospitality.d

The Star Sydney domestic revenue was down 13.5 per cent on pre-Covid levels. Overall, group revenue was down one per cent on pre-Covid levels.

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Based on current trading performance and the outlook for the remainder of the second half, the group now expects to report underlying EBITDA of $330m to $360m for the year ending June 30, 2023.

The end-of-year position will be dependent upon a number of factors which are uncertain at this time, including regulatory settings relating to complimentary services in The Star Sydney’s private gaming areas, the level of inbound international tourism and general consumer discretionary spending behaviour.

This guidance includes estimated remediation costs of $35m to $45m in FY23, of which approximately 50 per cent are expected to be recurring from FY24 (as disclosed at the AGM in November 2022).

Meanwhile, The Star has announced the commencement today of Scott Saunders as chief risk officer, pending all necessary regulatory approvals.

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Managing director and CEO Robbie Cooke said: “I am pleased to welcome Scott to this new role at The Star. He has started today and will play an integral role in returning The Star to suitability and earning back the trust and confidence of our regulators and other stakeholders.”

Saunders joins The Star from Westpac, where he was general manager, financial crime and chief compliance officer. Prior to Westpac, he was responsible for enterprise and financial crime compliance at Macquarie Group.

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