Australian casino operator Star Entertainment group is on a winning streak lately, particularly in terms of VIP exposure against its major rivals.
A new Morgan Stanley report, casino operator’s flagship property—The Star—is on a “monopoly position” for VIP patronage in Sydney, which remains to be Australia’s premier VIP market, The Australian reported.
Over the past two years, the Sydney casino resort has grown market share to 9.1 percent from 0.7 percent. The Star’s run rate VIP growth also stands at around 23 percent, compared to the entire Australian VIP market, which was only around 10 percent.
“The Star’s ability to manage new VIP market entrants still remains the biggest stock specific risk and longer term value driver, though this is not expected until 2021,” the report said, according to the news outlet.
The casino operator’s Sydney property future competition is expected to come from James Packer’s Crown Resorts, which is scheduled to open a casino targeting the VIP market in 2021.
Several weeks ago, the Australian Stock Exchange-listed company reported that its net profit totaled AUD194.4 million (USD148.13 million) for the full year ending June 30. Its gross revenue was also up by 4.4 percent year-on-year to AUD2.36 billion. The company said it recorded “good growth” across its Australian gaming business, with gaming revenue increasing 6.8 percent year-on-year to AUS1.51 billion.
Star chalked up the good numbers to “a combination of improved marketing, loyalty program, sales activity, product offering and stronger macro-economic conditions.” Aside from The Star Sydney, the casino operator also owns and operates TJupiters Gold Coast and the Treasury Casino in Brisbane.
The casino operator’s international VIP unit netted Star Entertainment a 7 percent jump to a record AUD49.5 billion. The casino operator sells tourist packages to high rollers in China and elsewhere in Asia as part of its international VIP rebate business, although Star pointed out that the win rate among VIP gamblers was “higher than usual.”