Australian casino operator The Star Entertainment Group Ltd. today announced its full-year results for the fiscal year ended June 30, 2016. The company reported growth in both statutory and normalized revenue, attributing its performance to improved marketing activities, loyalty program, and product offering as well as better macro-economic conditions in all the markets it operates in.
Statutory revenue for the reported twelve months totaled A$2.357 billion, up 4.4% from the previous financial year. Normalized revenue amounted to A$2.4 billion, reflecting a 6% increase year-on-year. The Star Sydney, the company’s highlight property, generated a total of A$1.7 billion during the twelve months ended June 30, up 8.6% year-on-year. Revenue from The Star Entertainment’s Queensland-based casinos amounted to A$687.5 million during the period in review, down 0.2% year-on-year.
Statutory EBITDA increased 7.5% year-on-year to A$488.8 million. EBIT for the period totaled A$325 million, reflecting an 11.8% increase from the prior-year period. Net profit after tax stood at A$194.4 million by the end of the reviewed twelve months, up 14.9% year-on-year.
On a normalized basis, EBITDA totaled A$556.2 million, up 14.1% year-on-year. The Star Sydney generated EBITDA of A$381.8 million during the previous fiscal year, up 17.4% year-on-year. EBITDA from the gambling operator’s Queensland-based casinos amounted to A$174.4 million, reflecting a 7.5% increase.
Normalized EBIT totaled A$392.4 million, up 21.2% from the prior-year period. The Star Sydney contributed A$280.1 million to the overall figure. The company’s Queensland casinos generated EBIT of A$112.3 million. Normalized net profit after tax increased 23.4% year-on-year to A$241.3 million.
Commenting on The Star Entertainment’s full-year financial results, Chairman John O’Neill AO said that the previous fiscal year was yet another of growth in earnings, improved overall performance, and increased dividends for shareholders. The official further noted that their strategy to invest in their integrated hotel and casino resorts has proved to be successful and to result in a rise in shareholder returns.
Last year, The Star Entertainment, formerly known as Echo Entertainment, was given the green light to build a multi-billion-dollar integrated hotel and casino complex in Brisbane, Queensland. Mr. O’Neill said in the company’s full-year report that it has reached a contractual close with the state’s Government on the ambitious project. The gambling operator has joined forces with Far East Consortium and Chow Tai Fook Enterprises into what has been named Destination Brisbane Consortium to work together on developing the Queen’s Wharf property.
The Star Entertainment currently operates The Star Casino in Sydney, and Jupiters Hotel and Casino and Treasury Casino in Queensland.
