Star Group posts record statutory earnings in FY17

Australia-listed Star Entertainment Group reported record statutory earnings for the 2017 financial year, helped by strong domestic revenue growth in the second half of FY17.

Statutory net profit after tax (NPAT) was A$264.4 million, up 36 percent year-on-year, supported by FY17H2 domestic revenue growth and high win rate in International VIP Rebate

However, normalized NPAT was A$214.5 million, down 11.1 percent year-on-year, impacted by lower turnover in the International VIP Rebate business as a result of disruption to the North Asia market.

The casino operator recorded revenue growth in its Sydney and Gold Coast properties – with statutory gross revenue up 3.2 percent to A$2.4 billion in the year.

EBITDA was up 19.9 percent in the year, to A$586.2 million.

“FY2017 saw further advancement in the Group’s strategy of investing in our core domestic assets and diversifying our international business. The gaming and non-gaming offerings at our Sydney and Gold Coast properties have been improved following the completion of major capital works,” said Star chairman John O’Neil in a statement.

The chairman also said there has been “significant progress” to expand and enhance its properties to cater to international visitors – particularly from Asia.

“Together with our Destination Brisbane Consortium (DBC) partners, Chow Tai Fook Enterprises (CTF) and Far East Consortium (FEC), the Group took possession of 13 hectares in the Brisbane CBD in January 2017 to progress development of the Queen’s Wharf Brisbane integrated resort. Demolition works are on schedule, with foundations work to commence in early 2018,” he said.

“At The Star Sydney, the Group, CTF and FEC continue to progress the development application in relation to a proposed approximately $500 million, 400 key tower, to include The Ritz-Carlton Hotel and apartments.”

The board has declared a final dividend of 8.5 cents per share, up 13.3 percent versus FY16.