The Star Entertainment Group has released their final report on their performance in the financial year ending in June. According to the report, the casino operator’s VIP turnover has improved to AU$61.2 billion, and the VIP revenue has also improved to AU$711.5 million.
The Star Entertainment Group’s VIP turnover has improved to AU$61.2 billion, and the VIP revenue has also improved to AU$711.5 million. According to the recent casino operator’s final report on their performance in the financial year ending in June.
The Start Sydney casino is responsible for bringing in most of the turnover and revenue from VIP clients. However, The Star Entertainment Group has reported that they have had low VIP winning rate in the financial year which was at 1.16% in comparison to the 1.59% in the previous years.
Reasons for the VIP Increase
According to the casino operator, the boost in VIP turnover and revenue is market normalisation and their sales driven diversification strategy. The CEO, Matt Bekier, has said that high rollers are returning to Australian casinos after the 2017 China arrests. The arrests prompted international VIP players to refrain from coming to Australia.
Mr Bekier went on to say that a third of The Star’ business comes from international high rollers. He also said the win rate also swings around a lot. The chairman, John O’Neill, has said that the recorded normalisation of revenues and earnings in this financial year reflect improvement across the company.
The Star’s VIP Growth (Results) in Comparison to Crown Resorts
The good financial year results for The Star are not very different from their rival company Crown Resorts. Crown Resorts has also experienced a growth in high roller presence and revenue. In the 2018 fiscal year, they have reported an increase in the turnover which reached AU$51.5 billion.
Currently, the Star Entertainment is finalising their new planned project to build AU$500 million Ritz-Carlton hotel and private residential apartments in Sydney. They have partnered with Chow Tai Fook and the Far East Consortium to build the luxury complex.
The Star Entertainment Group is also planning on making enhancements and upgrades to their Queen’s Wharf integrated resort in Brisbane. They plan to increase the scope of the resort by 25% which will boost a capital return. At the Gold Coast venue, they have approvals for the addition of four towers within the property.