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The Star Entertainment bounces back with record revenue despite project delays

Domestic tourism and gaming fuel The Star's financial turnaround—yet one mega-project's troubles loom. Can the casino giant sustain its momentum?

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2 min read
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The Star Entertainment bounces back with record revenue despite project delays

The Star Entertainment Group has reported strong financial recovery in its latest trading update. Revenue across its properties rose well above pre-pandemic levels, driven by a rebound in domestic tourism and new developments. However, delays and rising costs at a major Brisbane project have added financial pressure.

The company's fiscal year 2022 results, filed with the Australian Securities Exchange, showed normalised revenue of AU$1.53 billion ($1.06 billion) for the 12 months ending June 30. Domestic operations in the final quarter alone reached AU$512 million ($355 million), an 11% increase compared to 2019.

The Star Gold Coast saw the biggest gains, with revenue jumping 48% on 2019 figures. This growth was supported by new hotel and residential openings alongside stronger domestic tourism. Meanwhile, Star Sydney fully returned to pre-pandemic revenue levels, while the Brisbane property recorded a 13% increase.

Gaming performance also improved, with domestic slot revenue up 28% and table revenue nearly matching 2019 figures. Non-gaming revenue, including hospitality and entertainment, climbed 26%.

Despite these gains, the group faces challenges with its Queen's Wharf Brisbane Integrated Resort Development. Originally budgeted at AU$3.6 billion, the project's costs have now risen by about 10% from the adjusted AU$2.6 billion guidance. Delays caused by pandemic disruptions and unusually high rainfall have pushed back the opening timeline.

As of June 30, The Star held AU$513 million ($356 million) in liquidity, including AU$80 million ($55.5 million) in cash. However, net debt remained high at AU$1.15 billion ($798 million).

The Star's financial recovery reflects a strong rebound in domestic tourism and gaming activity. Yet, rising costs and delays at Queen's Wharf Brisbane will require careful management in the coming year. The group's liquidity position provides some flexibility, though debt levels remain a key consideration.

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