Initial overall results show a clear rise in revenue, to an all time record for the operator. The number was $2.6 billion in Australian dollars, which converts to $1.9 billion. This marks an impressive yearly increase of 6%, certainly nothing to be taken lightly. A good start. But earnings were on the decline, falling a significant 19.2% from the previous year putting the official bottom line at $484 million in Australian dollars. The final net profit after tax, otherwise referred to as NPAT, plummeted a bone jarring 44%, to $148 million in Australian dollars.
Normalised Figures Shed Light
But then why the celebrations, if figures look so grim? Australian casino operators add a metric to their end of year figures that is referred to as “normalising.” This extra calculation, according to the explanation, takes into account the factor that VIP guests are always winning, at a consistent rate. With this added into the fiscal year results, the figures look different. Now overall revenue is up 15.3%, earning are likewise up, by a massive 14.3% as opposed to slipping, and NPAT is no longer down either, but instead up by 20.3%.
In addition to adjustments via normalising, Star was quick to make clear that NPAT also suffered due to a debt restructuring, as well as costs related to a massive renovation project on the Gold Coast property. So according to these calculations, the Australian operator does indeed have reason to celebrate.
VIP Business Boom
Other results for the various venues owned by the group all saw positive gains, with VIP business increasing to such an extent that a bold statement was made; Star entertainment venues now have the largest VIP turnover in New Zealand, and Australia. Perhaps a friendly poke at local rivals, Crown Resorts, who likely won’t take the prod lying down.
The final word of the report is that the new location, Queen’s Wharf due to open in Brisbane, is still on budget, and going according to schedule. With a staggering $2.6 billion being sunk into the project, big things are expected from what will surely be another major money earner for the group.