Star Entertainment Reports A$2.435 Billion Net Loss for FY23
By Stuart Condie
Star Entertainment, the Australian casino operator, has recorded a net loss of A$2.435 billion for the 2022 fiscal year. This loss comes as the company faced impairments and allocated funds for ongoing regulatory challenges.
In its annual report released on Tuesday, the ASX-listed company revealed that A$2.17 billion of impairments were tied to its casinos in Sydney, Gold Coast, and Treasury Brisbane. Additionally, Star Entertainment set aside A$595 million to cover regulatory and legal costs incurred during the year. The company has been involved in multiple investigations, leading to operating restrictions in Sydney due to regulators' concerns about lax management practices.
Despite these challenges, Star Entertainment reported a 22% increase in revenue, reaching A$1.87 billion. The growth was driven by higher footfall compared to the previous year, which was impacted by Covid-related restrictions. However, the company did not declare a dividend.
According to analysts' forecasts compiled by FactSet, the average expectation was for a A$1.14 billion loss from revenue of A$1.90 billion. However, when excluding exceptional items, Star Entertainment's normalized annual profit stood at A$41.3 million. This result surpassed market expectations of a A$20 million profit. Last year, the company posted a loss of A$202.5 million.
In February, Star Entertainment had already disclosed a A$988.4 million impairment charge related to its Sydney venue in its half-year results.