Star Entertainment seeking new revenue initiatives, says CEO
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More news: Star Entertainment's CEO and managing director Steve McCann said the group is working on a range of revenue initiatives, including improving non-gaming offerings at its venues, in response to a downturn in trading performance.
McCann noted that its casinos have overseen a "very poor customer experience" due to the rollout of mandatory carded play, which sets time and loss limits for gaming.
"We are working hard on re-establishing those customer relationships and reactivating some customers who are not coming to The Star anymore because they don't like that combination of impacts," McCann told investors during an earnings call on Tuesday.
"They don't experience that at pubs and clubs, so there's a lot of work going into that."
McCann also said the group is looking at improving non-gaming aspects of the business, such as food and drinks offerings, which could lead to higher revenue and broader engagement with Star's venues.
What they said: "There is strong appetite with the regulators and state governments to achieve a safer gaming environment across the board," McCann said.
"It's very clear that customers that are no longer gaming at The Star are continuing to game elsewhere. Total revenue across New South Wales and Queensland in gaming machines has actually increased in recent years.
"It's the market share that The Star has that has materially declined. So if we were to regain a material proportion of that market share, we will be able to restore our revenue to profitable levels relatively quickly."
Star Entertainment reports $302m loss in delayed half-yearly report
The news: Troubled casino group Star Entertainment has reported a first-half net loss of $302 million, more than six weeks after its shares were suspended from trading on the ASX following the group's failure to lodge its financial results.
The numbers: Star's half-year loss compared to a $9 million net profit in the prior corresponding period.
Group revenue fell 25% year on year to $650 million, with domestic gaming revenue down 32%.
Significant items after tax totalled $166 million, including the impairment of the group's investment in its Brisbane resort and debt refinancing costs.
Star said it had available cash of $98 million as at 11 April.
The context: Star said its trading performance further deteriorated over the half-year period, in particular from the introduction of mandatory carded play and cash limits at its Sydney casino and "challenging trading conditions" driven by casino operating reforms and market share loss at its Gold Coast casino.
The group noted that monthly trading in the second quarter stabilised compared to the first quarter, though third-quarter revenue declined 9% due to softer trading.
Last week, Star announced a $300 million strategic investment from US group Bally's Corporation.
The embattled group has been under extreme financial pressure as it manages ongoing regulatory probes and a collapse in revenue. Star's shares have been suspended from trading since 3 March after the embattled casino operator failed to lodge its half-year financial report. The group said at the time it would not be able to lodge the report until it secured commitments to refinance its existing corporate debt and provide additional liquidity.
The source: ASX
