Star Entertainment (ASX:SGR) earnings hurt by Covid-19

Company News

by Lauren Evans

Star Entertainment (ASX:SGR) expects to report a loss in the first half of financial year 2022, with earnings impacted by Covid-19 related shutdowns and restrictions.

The casino giant said it expects to report normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $28 million to $30 million in the first half and a normalised net loss of $73 million to $75 million.

The Star expects to report statutory EBITDA of $30 million to $32 million (before significant items) and a statutory net loss of $73 million to 75 million (post significant items).

The Star Sydney, which was closed from the start of the period to October 11 last year, recorded strong revenue growth upon re-opening, with revenue up 29 per cent on the prior corresponding period from October 11 to December 31 last year. 

The Queensland casinos’ total revenue was stable on the prior corresponding period when open, despite border closures and Covid-19 related operating restrictions.

The company also said it identified the underpayment of wages to certain current and former salaried team members. The Star plans to take a provision of about $13 million in its first half accounts for the expected cost of remediation. 

Shares in Star Entertainment Group (ASX:SGR) are trading 0.6 per cent lower at $3.53. 

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