Profit at operator of Star Gold Coast drops 44pc after company carries cost of opening The Darling hotel on Gold Coast

THE operator of the Star Gold Coast has borne a heavy price for opening a new hotel on the Gold Coast. However, gaming revenue from international gamblers continues to grow.

Costs associated with opening The Darling has hurt Star’s bottom line. Picture: Murray Fredericks

THE operator of the Gold Coast’s sole casino has seen its profit slump 44 per cent after bearing costs associated with opening the 17-storey The Darling hotel.

The Star Entertainment Group said its full-year proft fell by 44 per cent, hurt by low house-win rates in their international VIP business, debt restructuring costs and expenses relating to the opening of a Gold Coast hotel.

Revenue, however, rose 5.5 per cent to $2.47 billion, as the money that international high-rollers brought to play with had risen 36.4 per cent to $4.7 billion, and turnover lifted 54.3 per cent to $61.2 billion. The casino operator declared a final dividend of 13 cents per share, up from 8.5 cents per share a year ago.

Block host Shelley Craft attended The Logies at The Darling on the Gold Coast. Picture: Adam Head

Normalised gross revenue - which strips out the win rate volatility of the international VIP rebate business - rose 15.3 per cent to $2.695 billion, while net profit was 20.3 per cent higher at $258 million.

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On the Gold Coast, normalised gross revenue soared 20.1 per cent compared to FY17 and International VIP Rebate turnover rose 120 per cent during the second half of FY18.

“At the Gold Coast, The Darling and enlarged main gaming floor have been commissioned to plan, with hosting of the Commonwealth Games celebrations and the Logies further positioning The Star as the Gold Coast’s signature tourism precinct,” CEO and managing director Matt Bekier said.

CEO of The Star Group Matt Bekier on the Gold Coast for the official opening of The Darling. Picture: Tim Marsden