Star’s FY profit drops 8.4% to $223.7m

The Star Entertainment Group’s full-year profit fell 8.4 per cent to $223.7 million after a solid domestic performance was offset by a drop in international VIP spending.

Normalised earnings for the 12 months to June 30 dropped 2.0 per cent to $557 million, within the $560 million-$600 million guidance range that prompted a 16 per cent share price fall when it was issued in June.

Domestic earnings rose 5.4 per cent but earnings from its international VIP rebate business fell 35.6 per cent on a lower spend per visit.

Overall normalised revenue, which strips out win rate fluctuations and other one-off items, fell 0.9 per cent to $2.16 billion.

“Record domestic revenues and earnings, reflecting continued positive reception by existing customers to recently delivered assets, have not offset declines in our international VIP rebate business, which was impacted by weaker market conditions,” chairman John O’Neill said on Friday.

Star cut its final dividend from 13 cents a year ago to 10 cents, fully franked.

Star said domestic revenue since the end of the 2019 financial year has continued to reflect a cautious consumer environment but has improved from the immediately prior period.

International VIP rebate business volumes are up on the same time a year ago, but Star noted that comparisons were difficult given the short time period.

Including an improved VIP win rate and one-off items, Star’s earnings rose 14.1 per cent to $552.8 million, while statutory profit jumped by a third to $198 million.

AAP

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