Star Entertainment shakes off VIP blues to post profit

The Star Entertainment Group posted a profitOne of the Australian gaming giants, The Star Entertainment Group, witnessed a rise in revenue in the fiscal year despite VIP gamblers cleaning up.

A preliminary report, released by the company last week, shows its revenue for the 12 months ending June increased by 6% to a record AU$ 2.6 billion (US $1.9b), compared to last year. Its earnings fell 19.2% to AU$ 484.4 million while net profit after tax also dropped by 44% to AUD $148.1 million.

Using the metric known as ‘normalised’ results, adopted by Aussie gaming firms, considered to provide a more definite look at the VIP gambling win rate, revenue went up 15.3%, earnings increased 14.3% while net profit after tax went up by 20.3%.

The company also indicated that AU$ 37 million of its statutory net profit after tax went into significant items including debt restricting and other expenses associated with the launch of its renovated Gold Coast edifice.

The Asian VIP gamblers of The Star, under the name ‘international VIP rebate’ business, as shown in May witnessed a long hot streak in the 2018 fiscal year. The year saw the VIP win rate at 1.16% compared to the 1.59% last year, with an average 1.35% under the ‘normalized’ heading.

However, the VIP turnover increased by 54.3% to AU$ 61.2 billion, while statutory revenue also increased by 11.2% to AU$ 711.5 million.

With these figures, The Star claims its VIP business is the largest in Australia and New Zealand and has credited the gains to “sales-driven diversification strategy” and “market normalization.”

More casino news

Subscribe
Notify of
guest

0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

iOS App
Android App
OnlineCasinoGames
Play the best Online Casino Games
Available to residents of United States
Welcome package of $20,000

18+. Gamble Responsibly. Full T&C's apply.

iOS App
Android App
BETMODE
Play, Win and Run the show with On-Chain Gaming
Available to residents of United States
75 Free Spins + Up To 50% Cashback

Deposit $500 or more and get 50% cashback. 18+ Gamble Responsibly. BETMODE T&Cs apply.

iOS App
Android App
ReefSpins
ReefSpins is for winners
Available to residents of United States
100% match up to $300

ReefSpins encourages all players to play responsibly and within their limits, gamble responsibly. Full T&C's apply.

BetOnline Casino
Trusted brand
Available to residents of United States
100 Welcome Free Spins

Sign up at BetOnline Casino and make a deposit to score 100 free spins on selected online slots. Full terms.

Bovada Casino
Bitcoin Friendly
Available to residents of United States
100% up to $3000

18+. Gamble Responsibly. Full T&C's apply.

Wild Casino
It's a jungle out there
Available to residents of United States
$5000 + 225 free spins

18+ gamble responsibly. First deposit only. Use code WILD250. Max deposit $1000. 5x turnover requirement. Full terms

0
Would love your thoughts, please comment.x
()
x