Star Ent Net Registers 36 Percent Growth In Spite of Drop in VIP Gaming

The Star Entertainment GroupIn a press conference held recently, Australian casino operator Star Entertainment Group Ltd has declared a healthy growth of 36% in net profit after deduction of taxes for FY 2017-18 ending on June 30th. The casino was able to register this remarkable growth even though there was a significant drop in the VIP gaming across the market.

The company commented that the decline in turnover from high rollers coming in from North Asia was compensated by more than expected win rate. As per the local media reports in Australia, the Australian VIP gaming was severely affected by the arrest of 19 Crown Resort employees last year. This, in turn, causes a significant reduction in the revenue of the casino.

The arrests were made because of crimes committed in gambling by the Crown employees marketing gambling services in Mainland China. It is to be noted that China employs prohibition of gambling marketing and advertisements.

Star Entertainment runs three different casinos in the country at the moment namely Treasury Casino, Jupiters Gold Coast and The Star Sydney Casino Hotel. As on June 30, 2017, the net profit was A$264.4 million or US$208.6 million as compared to a gain of A$194.4 million last year. The earnings above were reported by the casino before amortisation, depreciation, taxation and interest.

For this present financial period, the gross revenue for the casino was registered at A$2.43 billion, and it recorded a growth of 3.2% within one year period. There is a growth of 2% in domestic revenues reaching a figure of A$1.54 billion whereas there is a rise of 7.3% in revenue from international VIP customers to some A$639.6 million.

Matt Bekier who is the Chief Executive Officer of Star Entertainment made the following statement;

The North Asian disruption is lingering. We dropped a long way in November and December and it’s going to take a little while to climb out of that hole. We’ve been able to mitigate some of that through diversification.

Star Entertainment mentioned there was a decline of 18.6% on year on year basis in the turnover at its international VIP rebate business. The rebate business decline was offset by a win rate of 1.59% which is considered higher than the normalised rate of 1.35% according to the casino company.

According to the latest results, there is a drop of 39.7% in VIP revenue of Crown Resorts as compared to its performance last year and brought A$605.3 million. The overall income of the company has been hit by the poor performance of VIP gaming and withdrawal from international operation due to recent arrests.

The CEO of Star Entertainment further said they are focusing on broadening the international revenue sources and will offer VIP as well as premium mass customers a mutually exclusive tourism proposition.

Jay Stevens

Jay Stevens

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