Aussie Casino Group Up 14.9%

Australian casino operator Star Entertainment Group posted a net profit of A$194 million ($146.5 million) for the 2016 financial year, a rise of 14.9 percent. 


It exceeded expectations from market analysts who had estimated a A$239 million ($180.5 million) profit. The Star chairman John O’Neill said, “The increase in statutory net profit after tax from A$83 million ($62.6 million) in 2013 to A$194 million in 2016 represents a 33% compound annual growth rate over the last three years.” Revenue for its three properties – The Star Sydney, Jupiters Gold Coast and Treasury Brisbane – was up 6 percent to A$2.27 billion ($1.71 billion).

Star Sydney, its flagship, had a 17.4 percent rise in revenue to A$382 million ($288.5 million) and, the group said, retrieved lost market share in the past 12 months. It had competed more aggressively for China’s mass market and high-roller gamblers. It has forged closer ties with Chinese tour operators to target their customers.

The Star, which will lose its Sydney monopoly when Kerry Packer’s Crown Resorts opens its Barangaroo complex in 2021, is looking at the addition of a A$1 billion ($755 million) tower in Sydney, including a Ritz Carlton hotel.

O’Neill said that the group is in planning discussions with the Queensland government about a A$3 billion ($2.28 billion) complex in Queen’s Wharf in Brisbane to include a new casino, retail and entertainment complex on the banks of Brisbane River.