Star Entertainment Group FY23 Profit Reveals Significant Reduction in Debt

Overview

Star Entertainment Group, an Australian gambling and entertainment company, announced its yearly earnings on August 29, 2023. The company reported a slight improvement in profits across all segments, helping to offset the impact of regulatory restrictions on its Sydney business and stiff competition from larger rival Crown Resorts, which began operating in Sydney in August 2022.

Despite these challenges, Star Entertainment Group achieved gross income of AUD 1.87 billion ($1.20 billion) for the 12 months ending June 30, 2023, representing a 22% increase from the previous year. The company has been able to refinance its existing debt through cost-cutting measures and other business initiatives, resulting in a significant reduction in net debt from AUD 1.11 billion at the end of the previous year to AUD 596 million as of June 30, 2023.

After tax, Star Entertainment Group reported a net profit of AUD 41 million for FY23. However, the company incurred an impairment charge of AUD 2.48 billion, net of tax, due to the sale of assets from its fluctuating Sydney business and legal and regulatory costs.

Looking ahead to FY24, the company forecasts capital expenditure of between AUD 100 million and AUD 120 million. Star Entertainment Group plans to provide an update on the debt refinancing process in the coming months. The company has also successfully addressed the New South Wales casino levy increase, with the latest arrangements resulting in AUD 10 million in FY24.

Star Entertainment Group owns and manages The Star Gold Coast, The Star Sydney, and Treasury Brisbane, as well as the Exhibition Center and Gold Coast Convention on behalf of the Queensland Government. The company is committed to optimizing its properties, supporting the communities in which it operates, and capitalizing on the opportunities presented by its world-class locations in Sydney, Brisbane, and the Gold Coast. Its vision is to become Australia’s flagship integrated resort firm, supported by multi-billion-dollar transformational projects planned or in progress across its properties.

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