Faceoff with Crown coming in 2021
Star Entertainment is going great guns in Sydney, Australia. The Star’s appeal for high rollers has put the resort in a “monopoly position” for elite patronage in the market, which dominates in VIP patronage throughout the country, the Australian reports.
Since 2014, market share for the casino resort has soared from less than 1 percent to 9.1 percent, reports CalvinAyre.com. The Star’s run rate VIP growth also stands at around 23 percent, compared to the entire Australian VIP market, which was only around 10 percent.
“The Star’s ability to manage new VIP market entrants still remains the biggest stock specific risk and longer term value driver, though this is not expected until 2021,” the report said.
It is poised to withstand new competition from Crown Resorts’ Barangaroo casino project, which is set to open in 2021.
In August, the Australian Stock Exchange-listed company reported that its net profit totaled AUD194.4 million (USD148.13 million) for the full year ending June 30. Gross revenue was up by 4.4 percent year-on-year to AUD2.36 billion. The company boasted about “good growth” across its domestic business with gaming revenue up 6.8 percent year-on-year to AUS1.51 billion.
Star credited the gains to “improved marketing, loyalty program, sales activity, product offering and stronger macro-economic conditions.” In addition to the Star Sydney, the firm also owns and operates Jupiters Gold Coast and the Treasury Casino in Brisbane.
