Star Entertainment Group Limited · ASX:SGR
Star Entertainment — The Star Entertainment Group — FY2023 Earnings Presentation
36 slides from Star Entertainment's earnings presentation, Aug 29, 2023
Slide 1: Full Year Results Presentation ASX Announcement
ASX Announcement 29 August 2023 FULL YEAR RESULTS PRESENTATION Attached is the presentation regarding the financial results of The Star Entertainment Group Limited (The Star) for the year ended 30 June 2023. A conference call to discuss the financial results will be hosted by Robbie Cooke (Group Chi
Slide 2: FY23 Results Presentation
For personal use only THE STAR ENTERTAINMENT GROUP FY23 RESULTS PRESENTATION TUESDAY 29 AUGUST 2023
Slide 3: Basis of Preparation and Non-IFRS Information
THE STAR ENTERTAINMENT GROUP BASIS OF PREPARATION AND NON-IFRS INFORMATION ♦ Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with The Star Entertainment Group Limited’s (TSEG) financial report for the twelve
Slide 4: Contents
THE STAR ENTERTAINMENT GROUP CONTENTS 1. OVERVIEW For personal use only 2. GROUP FINANCIALS 3. TRADING YTD & KEY PRIORITIES 4. Q&A 3
Slide 5: Overview: Introduction
OVERVIEW INTRODUCTION ♦ Our focus in the year has been to work towards earning back the trust of our regulators, FY23 REMEDIATION governments, shareholders, team members, guests and the community by transforming our FOCUS culture, our governance, our risk and compliance management, our accountabilit
Slide 6: Overview: Introduction (continued)
OVERVIEW INTRODUCTION ♦ Progress on key remediation actions in the last 12 months include: KEY ACTIONS TAKEN (CONTINUED) • Culture review completed by The Ethics Centre. • Root Cause Analysis completed by Deloitte. For personal use only • Vision, Purpose, Values and Principles restatement commenced.
Slide 7: Overview: Significant Matters
OVERVIEW SIGNIFICANT MATTERS ♦ In-principle agreement reached with the NSW Government to amend the casino duty rates, NSW CASINO DUTY removing considerable uncertainty introduced in December 2022. RATES For personal use only ♦ AUSTRAC has commenced civil penalty proceedings in relation to alleged co
Slide 8: Group Performance
OVERVIEW GROUP PERFORMANCE FY23 FY22 FY23 EARNINGS Normalised1 EBITDA $317m $235m NPAT / (loss) $41m ($33m) For personal use only Statutory EBITDA $317m $238m NPAT / (loss) ($2,435m) ($203m) ♦ EBITDA slightly above the top end of previously announced guidance range (EBITDA $280m to $310m). ♦ Signifi
Slide 9: The Star Sydney Performance
OVERVIEW THE STAR SYDNEY PERFORMANCE NORMALISED1 FY23 FY22 FY23 EARNINGS % chg $m $m Sydney Revenue 978 774 27% For personal use only EGMs 341 261 30% Tables 498 418 19% Non-gaming 140 94 49% EBITDA 127 81 57% ♦ Performance impacted by uplifted controls resulting in increased guest exclusions, certa
Slide 10: The Star Gold Coast Performance
OVERVIEW THE STAR GOLD COAST PERFORMANCE NORMALISED1 FY23 FY22 FY23 EARNINGS % chg $m $m Gold Coast Revenue 505 422 20% For personal use only EGMs 233 214 9% Tables 103 96 7% Non-gaming 169 112 52% EBITDA 107 89 20% ♦ Strong start to the period benefitting from a surge in domestic tourism and custom
Slide 11: Treasury Brisbane Performance
OVERVIEW TREASURY BRISBANE PERFORMANCE NORMALISED1 FY23 FY22 FY23 EARNINGS % chg $m $m Brisbane Revenue 373 325 15% For personal use only EGMs 197 168 17% Tables 143 132 8% Non-gaming 34 25 34% EBITDA 83 65 29% ♦ Strong start to FY23 with a slight slowdown in the second half. ♦ Brisbane revenue up 1
Slide 12: NSW Casino Duty Rates
OVERVIEW NSW CASINO DUTY RATES ♦ In-principle agreement reached with the NSW Government to amend the casino duty rates IN-PRINCIPLE removing considerable uncertainty introduced in December 2022. AGREEMENT ♦ Creates a sustainable path forward for The Star Sydney, including employment certainty for te
Slide 13: Regulatory Update
OVERVIEW REGULATORY UPDATE ♦ Post the Bell Review, The NSW Independent Casino Commission suspended The Star NEW SOUTH WALES Sydney’s casino licence, appointed a Manager and imposed a $100m fine (payable in three instalments by 29 December 2023). ♦ The Casino Control Act was amended to include compul
Slide 14: Contents
THE STAR ENTERTAINMENT GROUP CONTENTS 1. OVERVIEW For personal use only 2. GROUP FINANCIALS 3. TRADING YTD & KEY PRIORITIES 4. Q&A 13
Slide 15: Group Financials Overview
GROUP FINANCIALS OVERVIEW ♦ Group revenue up 22% on pcp: FINANCIAL OVERVIEW • Queensland properties started the period strongly post Covid, however, trading softened in the second half, particularly on the Gold Coast. • Sydney performance was impacted by uplifted controls (and consequent exclusions)
Slide 16: Profit and Loss – FY23
GROUP FINANCIALS PROFIT AND LOSS – FY23 FY23 FY22 $M fav/(unfav) STATUTORY STATUTORY Domestic Gaming revenue 1,513.6 1,289.5 17.4% For personal use only International VIP Rebate - 5.5 (100.0%) Non-gaming and other revenue 353.9 239.1 48.0% Gross Revenue1 1,867.5 1,534.1 21.7% Player rebates and comm
Slide 17: Balance Sheet
GROUP FINANCIALS BALANCE SHEET $M JUN 2023 JUN 2022 ♦ Other assets of $94m include a payment to the Australian ASSETS Taxation Office in relation to the disputed GST treatment of Current Assets Cash and cash equivalents 88.7 82.0 rebates paid to junket operators ($40.9m). Trade and other receivables
Slide 18: Funding and Debt Refinancing
GROUP FINANCIALS FUNDING AND DEBT REFINANCING DEBT MATURITY PROFILE AT 30 JUNE 2023 ($M) 600 As at 30 June 2023: For personal use only ♦ $1.1bn total facilities 226 400 ♦ $0.7bn drawn ♦ 2.0 years weighted average debt maturity of 200 committed debt facilities 314 70 213 ♦ $0.5bn total available cash
Slide 19: Capex and JV Contributions
GROUP FINANCIALS CAPEX AND JV CONTRIBUTIONS ♦ Capex of $126m, below guidance of $150m and well below D&A of $195m. GROUP CAPEX ♦ FY24 capex expected to be $100m to $120m. For personal use only GROUP CAPEX* ($M) D&A Historical capex Forecast capex 500 477 420 400 320 306 300 226 206 225 211 208 187 1
Slide 20: Contents
THE STAR ENTERTAINMENT GROUP CONTENTS 1. OVERVIEW For personal use only 2. GROUP FINANCIALS 3. TRADING YTD & KEY PRIORITIES 4. Q&A 19
Slide 21: 1H FY24 YTD Trading
TRADING YEAR TO DATE 1H FY24 YTD ♦ Early 1H FY24 trading is broadly consistent with 4Q FY23. In the period from 1 July 2023 to EARLY 1H FY24 TRADING 22 August 2023: • Group: revenue down 20% on pcp but up 3% on 4Q FY231; For personal use only • Sydney: revenue down 23% on pcp but up 3% on 4Q FY231;
Slide 22: Quarterly Earnings
TRADING YEAR TO DATE QUARTERLY EARNINGS GROUP NORMALISED FY23 FY23 FY23 FY23 FY23 RESULTS ($M) 1Q 2Q 3Q 4Q TOTAL YEAR Slots 211.6 197.1 187.7 174.1 770.5 For personal use only Domestic Tables 216.1 195.4 171.6 160.0 743.1 Non-gaming & Other Revenue 94.1 98.8 80.2 80.7 353.8 Total Domestic Revenue 52
Slide 23: Priorities for the Year Ahead
KEY PRIORITIES PRIORITIES FOR THE YEAR AHEAD REMEDIATION ♦ Comprehensive and urgent focus on remediation actions. 1 MEASURES ♦ Working towards returning to suitability. ♦ Repair and strengthen The Star’s relationships with relevant regulators and other stakeholders in NSW and Queensland. For persona
Slide 24: Queen's Wharf Brisbane
MAJOR PROJECTS QUEEN’S WHARF BRISBANE PLANNED OPENING FROM APRIL 2024 ♦ Project delayed through the period For personal use only ♦ Significant milestones include: • Final section of the SkyDeck lifted into place in July • Topping out of The Star Grand Hotel • Received ‘the keys’ to several dining, e
Slide 25: Gold Coast Tower Underway
MAJOR PROJECTS GOLD COAST TOWER 2 UNDERWAY ♦ Construction of Tower 2 is targeting a late 2024 opening For personal use only with all apartments pre-sold ♦ Construction is up to level 30 ♦ Capital works will be funded by partner contributions, existing and new debt facilities ♦ Upon completion of Tow
Slide 26: The Star Sydney Key Projects
MAJOR PROJECTS THE STAR SYDNEY KEY PROJECTS ♦ The Darling Hotel – completion of the refurbishment of For personal use only Sydney’s only Forbes five-star hotel in August 2023 ♦ Staff amenities – upgrade of back-of-house staff amenities, locker and changeroom facilities completed through the year ♦ L
Slide 27: Contents
THE STAR ENTERTAINMENT GROUP CONTENTS 1. OVERVIEW For personal use only 2. GROUP FINANCIALS 3. TRADING YTD & KEY PRIORITIES 4. Q&A 26
Slide 28: Appendix
For personal use only THE STAR ENTERTAINMENT GROUP FY23 RESULTS PRESENTATION APPENDIX
Slide 29: Statutory Results – FY23
APPENDIX STATUTORY RESULTS – FY23 SYDNEY GOLD COAST BRISBANE TOTAL $M FY23 FY22 fav/(unfav) FY23 FY22 fav/(unfav) FY23 FY22 fav/(unfav) FY23 FY22 fav/(unfav) EGMs 340.9 261.4 30.4% 233.0 214.3 8.7% 196.6 168.1 17.0% 770.5 643.8 19.7% Domestic Tables 498.0 418.2 19.1% 102.5 96.0 6.8% 142.6 131.5 8.4%
Slide 30: Normalised Results – FY23
APPENDIX NORMALISED RESULTS – FY23 1 SYDNEY GOLD COAST BRISBANE TOTAL $M FY23 FY22 fav/(unfav) FY23 FY22 fav/(unfav) FY23 FY22 fav/(unfav) FY23 FY22 fav/(unfav) EGMs 340.9 261.4 30.4% 233.0 214.3 8.7% 196.6 168.1 17.0% 770.5 643.8 19.7% Domestic Tables 498.0 418.2 19.1% 102.5 96.0 6.8% 142.6 131.5 8
Slide 31: Portfolio of Premium Properties
APPENDIX PORTFOLIO OF PREMIUM PROPERTIES QWB to replace Treasury Brisbane once open The Star Sydney The Star Gold Coast Queen’s Wharf Brisbane Treasury Brisbane For personal use only Year opened ♦ 1997 ♦ 1985 ♦ April 2024 phased opening3 ♦ 1995 ♦ 99 years ♦ Perpetual licence ♦ 99 years from opening
Slide 32: Operational Metrics
APPENDIX OPERATIONAL METRICS SYDNEY GOLD COAST BRISBANE OPERATIONAL METRICS FY23 FY22 fav/(unfav) FY23 FY22 fav/(unfav) FY23 FY22 fav/(unfav) EGMs Revenue ($m) 341 261 30.4% 233 214 8.7% 197 168 17.0% For personal use only NMR/machine/day 627 484 29.5% 447 410 9.2% 397 341 16.6% MTGMs Revenue ($m) 8
Slide 33: Sustainability
APPENDIX SUSTAINABILITY OUR STRATEGY For personal use only ENVIRONMENT PEOPLE Create low carbon places that Foster wellbeing and enhance support nature and conserve communities, within and beyond resources our precincts RESPONSIBILITY Lead with integrity to ensure safer gambling, sustainable growth,
Slide 34: Sustainability and Environmental
APPENDIX SUSTAINABILITY SUSTAINABILITY AND ENVIRONMENTAL GREEN STAR PERFORMANCE RATINGS > 90 % portfolio with For personal use only environmental achieved for The Star Sydney and The Star Gold Coast ratings 5.5 STAR NABERS ENERGY RATING (Green Star, NABERS, EarthCheck) achieved for Sydney Corporate
Slide 35: Glossary
APPENDIX GLOSSARY TERM DEFINITION AML/CTF Anti-Money Laundering and Counter-Terrorism Financing AUSTRAC Australian Transaction Reports and Analysis Centre CAGR Compound Annual Growth Rate For personal use only Capital expenditure (capex) Unless otherwise stated, capital expenditure is presented on a
Slide 36: For personal use only
For personal use only
The Star Entertainment Group — FY2023 Earnings Presentation on 6ix