Star Entertainment cleaned up by Asian VIP gamblers
THE Star Entertainment Group has taken a hit at the hands of its Asian VIP gamblers in 2018.
Star Entertainment held an investor day presentation, including a financial report on the group’s performance this year.
The company announced its normalised revenue was up 16.4%, with this largely coming down to attracting big Asian punters.
VIP money flowing into the casino was up 63.7% year on year, with the company accrediting this jump to attracting new high rollers outside of its traditional stronghold in China.
However the company is yet to cash in on the renewed VIP push, with a predicted win rate of 1.35% failing to be met, instead this figure was 1.06%.
The company also reported lower table hold rates right across its Australian and New Zealand venues, but still reported domestic revenue growth of 2.6% year on year.
The company also warned investors its promised Brisbane project at Queen’s Wharf had blown out from $1.8 billion to $2.4 billion. But this price increase is expected to improve the precinct’s profitability with more gaming space and room for retail outlets.
The new project, which is expected to be ready to open in 2022, is a joint venture from Star and Hong Kong business partners Chow Tai Fook Enterprises and Far East Consortium International.