Star Entertainment Group, one of Australia’s largest gaming and leisure groups, says its Asian high roller gambling section has been doing the most since the beginning of this year. The VIP customers have brought larger revenue despite the company’s focus on the new Brisbane and Gold Coast-located projects. Read on.
Star Entertainment Revenue Soars
On Monday, the company hosted its annual investor day presentation. The seminar included a year-to-date (May 23) trading update. According to the presentation, Start Entertainment saw a whopping 16.4% increase in ‘normalized’ gaming revenue –compared to the previous year. All thanks to the casino’s soaring ‘International VIP Rebate’ business.
The VIP turnover for the casino was up 63.7% year-on-year, this due to the the group’s effort to enlarge its VIP market beyond North Asia, to South Asia and also recruit more ‘non-junket’ gamblers.
However, while VIP customers came in masses, the win rate was below the 1.35% theoretical rate. In the second half of 2017 the trend was on full display with a VIP win of 1.06%.
Star’s Other Developments
The presentation wouldn’t have been complete if Star Entertainment didn’t mention their on-going projects, which of-course, everyone is looking forward to.
The Queen’s Wharf Brisbane Project
The entertainment group announced that there would be a large increase in the amount budgeted for its Brisbane-situated Queen’s Wharf casino project. Due to the gross area’s 25% boost, the resort’s costs will go up to AU$2.4 billion from the initial AU$1.8 billion that was announced previously. The group of casinos is currently engaged to the two billion dollar project. However, official offers of the first phase of the construction will be announced next month. The foundation of the project, as well as the basement, will be laid down next year, and construction above the ground is expected to begin in 2020.
Gold Coast Casino
Star Entertainment announced that it would kick-off its construction for the Gold Coast casino’s new accommodation tour in August this year. However, the company is still to hear from the government if another casino licence will be required from them. Otherwise, everything else is in order.