The COVID-19 pandemic, the tight labour market, inflation, and operating restrictions continue to stifle growth at the gaming giant | ameliamcguiree
The Star Entertainment Group has reported a statutory loss of $199 million for 2022 as it counts the cost of scrutiny into its Sydney casino and as the COVID-19 pandemic and operating restrictions continue to stifle growth.
Normalised earnings before interest, tax, depreciation and amortisation for 2022 - the measure most closely watched by investors - dropped by 45 per cent to $237 million. Normalised revenue fell by 1.6 per cent to $1.52 billion on the year prior.The group booked $168 million in significant items including a goodwill impairment charge of $162.5 million for its Sydney casino. The gaming giant is bracing for the release of a report into its suitability to hold a NSW casino licence.
Operating expenses grew by 14 per cent on the year prior to $909 million, reflecting increased costs due to the tight labour market, the pandemic, inflation, regulatory reviews and increased investment in regulatory and compliance functions in addition to investment in external consulting. The Star did not declare a dividend for the third year running. The company agreed as part of a covenant waiver with its banks to not resume shareholder payouts until its gearing falls below 2.5 times.The casino group has told the government it owes $8.7 million after allowing gamblers to play as international “rebate players” – meaning they paid lower gambling duties than NSW residents.
The Star said it did not consider it appropriate to comment on the report in light of the ongoing review by Adam Bell SC who is due to hand down his findings following a lengthy inquiry by August 31.The NSW Independent Liquor & Gaming Authority launched the review into The Star, led by Adam Bell, SC, last year