According to Australia’s Sydney Morning Herald, major casino operator Star Entertainment Group is to cut 400 jobs as it struggles with a sharp downturn in VIP players from outside of the country.
The group’s share price fell to a tour-year low on June 12, closing 15.7 per cent down at AU$3.80 when the company reported a downward estimate of AU$18m (three per cent) in its forecast profit for the year.
The group is now forecasting EBITDA of AU$555m, as it blamed a decline in revenue from the weaker Chinese economy’s VIP players. Star relies heavily on their contribution.
Star has casinos in Sydney, Brisbane and on the Queensland Gold Coast. Their turnover from VIPs is down nearly one-third up to last week.
CEO Matt Bekier said major customers were only spending two or three days at a casino, whereas the normal would be a week.