Star Entertainment Group cut its full-year revenue and revenue expectations, citing tough trading conditions and higher improvement costs.

Revised Financial Outlook:

The company now expects annual revenue to be between $1.68 billion and $1.69 billion, while normalized group revenue to be between $165 million and $180 million. The adjustment reflects the financial impact of ongoing economic pressure and relief efforts.

According to Capital Brief, Star Entertainment Group expects quarterly revenue to decline 4.3% quarter-over-quarter and to decline 3.3% year-over-year through June 30, 2024. The decline is primarily attributed to ongoing challenges in the premium gaming sector amid widespread economic uncertainty.

Premium gaming room revenue for the June quarter is expected to drop 16.5% year-over-year, with sales at Queensland properties expected to drop significantly. Star Gold Coast and Treasury Brisbane saw premium gaming revenue fall 22.6% and 18.2%, respectively, while Star Sydney's premium gaming revenue fell 13.2%.

Conversely, The Star Gold Coast's major gaming floor revenue rose 10% year-over-year, easing some revenue losses, while Treasury Brisbane's major gaming floor revenue remained flat, sending overall real estate revenue down 6.9%, according to Inside Asian Gaming.

The Star Sydney's main gaming floor revenue rose 6.3% year-over-year, but real estate overall gaming revenue is expected to decline 0.9% compared to the fourth quarter of FY23.

Operational challenges and cost management:

Star Entertainment Group continues to face severe operational challenges, including lower revenue and higher operating costs. Its average monthly cost in the first half of FY24 increased from A$90.3 million to A$92.5 million in the fourth quarter, primarily due to ongoing recovery and innovation efforts aimed at operational efficiency.

In response to these challenges, Star Entertainment Group is implementing initiatives to expedite cost savings across its operations.

Amid the financial adjustment, Star Entertainment Group appointed Neil O'Connell as its acting CEO to oversee operations during the CEO search process. Interim Chairman Anne Ward also took on the added responsibility of ensuring continuity of leadership until a permanent CEO was appointed. Both executives will receive more rewards, reflecting their expanded roles.

The company is facing a second round of investigations into casino operations in New South Wales and regulatory scrutiny, including regulatory challenges in Queensland. Star Entertainment Group is also strategically selling off its non-core assets to streamline operations and increase financial resilience.

Star Entertainment Group's revised financial outlook, published in Star's official ASX announcement (PDF), reflects a proactive approach to addressing current market challenges and pursuing sustainable growth strategies. The Company aims to address the complexity of its gaming and entertainment segments while providing long-term value to stakeholders, with a focus on operational excellence, regulatory compliance, and strategic redeployment.  에볼루션 바카라사이트