Star Entertainment Group Reveals AU$6.8 Million Loss in Q1 2024

Another blow has fallen on Australia’s Star Entertainment Group, which announced a AU$6.8 million ($4.4 million) loss for the first quarter of 2024. The primary cause of this loss has been the extended absence of high-end players.

The company reported a dramatic 19.3 percent year-over-year decline in revenue from premium gaming rooms at The Star Sydney in its quarterly trading statement, which was posted on Friday.

In a similar vein, premium gaming revenue at Treasury Brisbane and The Star Gold Coast has decreased by 28% and 20%, respectively.

Overall net revenue falls by 4.6 percent compared to the same period in March 2023, totaling AU$419.2 million ($274 million).

This is despite a slight improvement in performance on the main gaming floors, with The Star Sydney seeing a 5.4 percent year-over-year increase, The Star Gold Coast seeing a 4.6 percent increase, and Treasury Brisbane seeing a 6.4 percent improvement.

With AU$20.2 million ($13.2 million) earned in January, AU$10.3 million ($6.7 million) in February, and AU$7.4 million ($4.8 million) in March, the firm reports a normalized EBITDA of AU$37.9 million ($24.7 million) for the quarter.

Citing a continual increase in related expenditures, The Star highlighted its efforts to enhance risk management, controls, and transformation skills.

By the start of 2024, these expenses will have increased from AU$90.3 million ($58.9 million) per month in the first half of the fiscal year to AU$92.1 million ($60.1 million) per month.

The Star is being investigated more thoroughly in light of these problems, and on Monday, an official second examination into the Star Sydney property’s activities will start.

In addition, the business is coping with the resignations of two of its most important executives, Christina Katsibouba, the chief financial officer, and CEO Robbie Cooke, who left last month.

Original Story by: Asian Gaming Brief