Embattled Star reports $2.4b loss after major casino write-down
Star Entertainment has blown out to a $2.4 billion loss after the embattled operator wiped more than $2 billion from the value of its Sydney, Gold Coast and Brisbane casinos.
The company announced a $2.2 billion non-cash impairment of The Star Sydney, The Star Gold Coast and Treasury Brisbane as revenue climbed 22 per cent to $1.9 billion for the 2023 financial year.
Star Entertainment boss Robbie Cooke says remediation is the company’s top priority. Louie Douvis
Star chief executive Robbie Cooke said the damage to the company’s social licence was felt by team members.
“The ancillary challenges that have arisen in the year, and there are many, all follow from the breaches of trust identified in the Bell and Gotterson reports,” Mr Cooke said.
“Remediation is our number one priority. We have commenced the uplift in our risk management, safer gambling and AML [anti-money laundering] capability and are starting to embed greater accountability and more robust governance.”
Statutory earnings before interest, tax, depreciation and amortisation excluding any significant items was slightly above previously announced guidance at $317 million for the year ending June 30, an increase of $79 million.
Significant items of $2.8 billion were predominantly caused by a non-cash impairment of the Sydney, Gold Coast and Treasury Brisbane goodwill and property assets, as well as regulatory and legal costs, debt restructuring costs and redundancies.
Star said its Sydney casino, which it is considering offloading, was impacted by operating restrictions, increased competition and a fall in discretionary spending. But revenue at the Sydney casino grew 27 per cent to $978 million for the year, driven by a large increase in non-gaming revenue.
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