Gaming insights Gaming

Star claims record profit despite VIP revenue fall

Written by Ben Blaschke

Australia’s Star Entertainment Group has posted record profit for the six months through 31 December 2016, despite VIP turnover suffering a heavy hit due to the arrests of 18 staff from rival operator Crown Resorts in China in October.

VIP turnover slid by 11.9 percent for the six months, including 27 percent in November and December, as the company took a step back from its Chinese operations.

In response, CEO Matt Bekier said Star Entertainment Group was, “executing against our strategy of diversifying our international revenues, including the south-east Asia VIP and Asian premium mass. We continue to assess the north Asian VIP business as the China situation develops.”

Nevertheless, revenue for the Group rose by 12.2 percent to AU$1.18 billion year-on-year with net profit after tax up 135 percent to AU$141.8 million. Normalized net profit was down 17.7 percent to AU$107 million.

It comes just a week after the company’s flagship The Star in Sydney was named Casino Operator of the Year Asia/Australia at the 10th Annual International Gaming Awards in London.

The Star is currently investing AU$500 million into refurbishment and recently launched the Star Training Academy – a state of the art facility aimed at developing the technical and service skills of over 80 gaming team members each month.

Greg Hawkins, Managing Director at The Star, said, “Our journey of developing our guest experiences to be truly world class continues. It is such an honor to be recognised as the Casino Operator of the Year across Asia and Australia, in the 10th anniversary year of the International Gaming Awards. The win highlights the tremendous effort the entire team has contributed to date in providing our guests with a truly unique gaming and customer experience.”