Star Entertainment finances: Profits plummet for Queen’s Wharf developer

The developer of Brisbane’s Queen’s Wharf project has reported an almost 50 per cent drop in profits and is warning things might not improve as the impact of the coronavirus outbreak hits its bottom line.

STAR Entertainment, the developer of Brisbane’s Queen’s Wharf project, has reported a steep drop in profit and warned of the impact of coronavirus on visitor numbers.

The Brisbane-based gaming and resort operator said profit in the six months to the end of December fell 48.5 percent to $77 million with revenue dropping 8.4 percent to $1.05 billion.

The company’s shares gained 5 per cent as investors factored in that results had been impacted by an “unusually low win rate” against VIP high rollers of 0.73 per cent. That means for every $100 bet, the casino in theory won 73 cents.

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Chief executive Matt Bekier said there had been an initial substantial impact of corona virus on domestic visitation and revenue.

An artist’s impression of the Queen’s Wharf development in Brisbane’s CBD. Photo: Supplied

However, Mr Bekier said the virus would not deter the company from continuing to invest in the tourist sector, including Queen’s Wharf.

The company had delivered delivered record group earnings on a nomalised basis with the domestic business showing growth.

“The temporary disruption from coronavirus on the tourism industry does not require change to our long term strategy of investing to drive visitation,” said Mr Bekier.

The outbreak of coronavirus, which had coincided with the busy Lunar New Year period, had affected both international and domestic visitation, particularly in Sydney. Inbound tourist numbers had been impacted by border closures.

Star Casino CEO Matt Bekier (right). Pic Tim Marsden

The company said it would continue negotiations with the State Government for “regulatory certainty” on the Gold Coast amid concern a second casino licence will be granted.

Star has offered to deliver the $2 billion masterplan upgrade of The Star Gold Coast and invest up to $100 million for the expansion of the Gold Coast Convention and Exhibition Centre once an agreement is reached. A detailed proposal is expected to be submitted to the government by the end of the month.