A solid showing in the domestic market helped Star Entertainment offset a massive decline in its international VIP business in the company’s full year results.
The company reported net profit after tax of AUD58m ($41.5m) in the 12 months to 30 June 2021.
With the coronavirus pandemic continuing to impact the company’s three properties – The Star Sydney, The Star Gold Coast and Treasury Brisbane – gross revenue fell 11 percent year-on-year to AUD1.56bn ($1.1bn), although EBITDA rose 51 percent to AUD427m ($305.2m).
The company confirmed it has entered into sale-leaseback agreement for its flagship property The Star, Sydney, and is planning to pursue a similar arrangement for the Treasury Casino.
Star Entertainment said it plans to retain around a 50 percent ownership in the Sydney property, while it is targeting a Brisbane sale of around AUD250m ($178.8m) this financial year. The company added that it may pursue a similar arrangement for its Gold Coast casino resort in the future.
“The fundamental earnings prospects for The Star’s domestic business remain attractive. They are underpinned by valuable long-term licences in compelling locations and the transformation of our properties into globally competitive entertainment destinations is nearing completion,” said Star’s Chairman John O’Neill.