Australian casino operator Star Entertainment Group said domestic players gambled record amounts at its casinos in the full year, sending its shares up six per cent.
However, underlying profit fell due to dwindling foreign wagers, mainly from China. The Sydney-based firm reported a 5.4 per cent jump in annual domestic core earnings, undeterred by a cooling economy and sluggish spending in Australia. Star’s gross domestic revenue of A$1.93bn (US$1.31bn) accounted for nearly 90 per cent of its total net revenue of A$2.16bn.
The company’s annual normalised revenue from its VIP business slumped 30.7 per cent, as far-reaching effects of bitter trade relations between the US and China dented confidence among high-spending Asian gamblers.
Domestic revenue in the first half of fiscal 2020 “continues to reflect a cautious consumer environment,” but has improved from the previous half, Star said.
