Foreign Money Making Big Impact On Australian Casinos
According to the annual fiscal year results of the Star casino, big money from Asian gamblers across its several establishments resulted in a 20% increase in profits. Considering the huge margin increase that too, just from foreign high roller numbers is a sure shot indication that the casino giant has been making serious money in the industry. The Star casinos have been a game changer in the casino industry in Australia and this is clearly evident from the revenues that it is generating. This casino has become the talk of the town now and is also drawing a lot of international audience to its rooms. Further, its biggest competitor, The Crown also saw lesser VIP gamblers at their casinos compared to The Star. As a result, the competition has become even tougher and by a bigger margin.
The metrics used to measure how good or bad a casino is doing is called the normalized index. What is more interesting is that these figures have been achieved after a drop in foreign investments, especially from Asia in the previous fiscal year results. This points to the effects of anti-gambling measures taken by the government in places like China. This has not deterred the Star Entertainment Group that saw its revenue hit a record high. As Asian converts are likely majorly from parts of these countries, their direct impact has been reduced and that is a good news for the likes of The Star and The Crown.
Statutory profits fell still
The Star posted a record high revenue of 61 billion AUD and yet counted a dip in statutory profits that is profits after tax by nearly 50% as per some claims. Again, the situation is credited to over-generous policies where these high rollers also won a large sum of money in return. The casino industry is full of all praise that the trading atmosphere in The Star is “pleasing”. There cannot be a better statement than this one for new gamers and poker players, and certainly for high rollers.
Throughout the ups and downs, one good thing for The Star Entertainment Group is that they have seen a rise in profits and hence an increase in the market price of their shares by 5.9%. This rise is indicating that some good stuff is going and the place is bringing more challenge to the table. So far, Matt Bieker, the chief executive made a statement that their international business has delivered excellent results while consolidating the No 1 position in the market. Considering their chances quite feeble of making more money, they have sprung up with more attitudes. In recent days there is more to come as new measures are being taken to improve and make betting and gambling longer.
John O’Neil, the Star’s Chairman, has attributed to the boost in the revenue to the improvements in the casino operations and to the upgrades done to the Gold Coast and Sydney casinos.
The gaming analysts are of the opinion that trading conditions of the Star Entertainment Group in the 2109 financial year also look promising. It is expected to do pretty well in the private gaming stores. At present, the Star Entertainment group is the second best casino company in Australia. It has casinos running in Brisbane, Sydney, and the Gold Coast in the country.
So, all shareholders are happy that their investments are fine and going up. Many other competitors, namely the Crown and SkyCity are also involved in making their figures shine. But, it seems that the last fiscal year is long over and we are already into another year. So, anything that can be done has to be done in this year.Last Update: 2019.09.17