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Highlights:
- Star Entertainment released its expected FY22 earnings report on the ASX today, along with early trading updates for FY23.
- Star’s business has improved in fourth quarter of FY22 and the company is likely to report AU$1.53 billion in revenues for the full year ended 30 June 2022.
- Star Entertainment also made a strong start to the new financial year (FY23).
Casino operating giant, The Star Entertainment Group Limited (ASX:SGR), released an update on the ASX today (29 July) that reveals the company's expected FY22 financial results and early FY23 trading performance.
Followed by this update, Star Entertainment shares opened trading in the green zone on the ASX today. The company's share price stood at AU$3.09 per share after gaining marginally by 0.651% at 10:51 AM AEST on the ASX today.
Details of Star Entertainment's expected FY22 results:
Star Entertainment believes that its domestic revenue recovered significantly during the last quarter of FY22 (Q4 FY22) as its properties were open in an 'unrestricted' manner. As a result, the company expects to generate a normalised revenue of AU$1.53 billion in FY22, ended on 30 June 2022. However, the company is yet to carry out an external audit and report the official financial statements for FY22.
Star Entertainment's business was highly impacted due to the COVID-19 lockdown, as most of its properties were shut down. However, in the June quarter, the company's business began to improve, thanks to the easing off of COVID-19 restrictions.
As a result, in the June quarter, Star's domestic revenue was up by 11% to AU$512 million compared to pre-COVID-19 levels (2019). Slots revenue gained by 28%, and non-gaming revenue increased by 26% in the given period. Although domestic table revenue was not recovered completely, it was within 5% of the pre- COVID-19 levels.
Image source: © Linqong | Megapixl.com
The Star Gold Coast has also performed well in the last quarter. It was highly benefitted by the recovery in domestic travel and the opening of the Dorsett Gold Coast Hotel and the Star Residences during the given period. Meanwhile, the Brisbane domestic revenue also gained by 13% from the pre-COVID-19 levels. On the other hand, Star Sydney's domestic revenue was the same as that of pre-COVID-19 levels.
Despite performing strongly in Q4 FY22, Star Entertainment believes that its full-year results might get impacted by the loss that it incurred in H1 FY22.
At the end of FY22, Star Entertainment will likely possess AU$513 million of liquidity on hand, AU$433 million of undrawn facilities, AU$80 million cash in hand and net debt of AU$1.15 billion.
The company is expected to release its fully audited official financial statement for FY22 on 22 August 2022.
Star Entertainment's trading updates of FY23:
Star Entertainment has recently stepped into FY23. So far, the company's trading remains strong and is above pre-COVID-19 levels. The Star Sydney's business has improved further, and it is now trading higher than pre-COVID-19 levels. Both the properties owned by Star Entertainment in Queensland are performing well and are above pre-COVID levels.
