Star Entertainment reports massive AU$2.4b loss in FY2023
Star Entertainment has recently published its latest financial performance report highlighting substantial losses for the firm in the 2022-23 financial year.
The report started off strong with the company’s gross revenue experiencing a 22% growth to 1.87 billion Australian dollars in the 12 months that ended on the 30th of June this year. The company’s EBITDA figure grew further at 34% year-over-year to 317 million dollars, while its earnings before interest and taxes increased by more than 310%, going from under 30 million dollars to more than 120 million dollars in the fiscal year.
However, in contrast to these increases, the operator’s statutory net profits after taxes experienced a massive over 1100% decrease, going from last year’s net loss of just 32 million dollars to just over 2.4 billion dollars.
The operator mentioned that the bulk of the multi-billion dollar loss comes from the impairment of its three main operating establishments in Sydney, Gold Coast, and Brisbane, which totaled just over 2.1 billion dollars in losses. The second largest contributor was the company’s numerous legal costs, which include two 100 million dollar fines from the gambling regulators of the Australian states of Queensland and New South Wales, in addition to an 80 million dollar fine from the state of Victoria.
Another one of the contributors to the company’s FY2023 losses was Star’s restructuring plan, which was announced in April. This involved 500 full-time equivalent redundancies, which cost the firm 16 million dollars.