Star Entertainment VIP revenue surges, Brisbane project costs rise

Star Entertainment Group said its international VIP rebate business has continued to show strong growth into the second quarter, with turnover jumping almost 64 percent year to date.

In an investor presentation filed with the Australian Stock Exchange, the group said the win rate in the business through to May 23 was below the theoretical rate of 1.35 percent.

Total normalized group revenue was up 16.4 percent, with domestic growth up 2.6 percent. The company said its domestic business had been hit by low hold rates. At constant rates revenue would have gained 6.6 percent.

Star also said it had increased its projection for the cost to build its Queen’s Wharf development in Brisbane to $2.4 billion, up from $1.8 billion previously. The group said up to December last year, it had incurred costs of $302 million.

The company said the project cost inflation had been higher than expected, though it expects the trend to moderate.

The property is expected to open in the second half of 2022, with 250 tables, 2,500 slots and 1,100 hotel rooms. Star is redeveloping the site in a $3.3 billion project with Hong Kong-based Chow Tai Fook Holdings and Far East Consortium.