Revenue declines at Star’s Gold Coast property also partly reflected seasonal issues.Credit:Paul Harris
Revenue declined more than $200 million for the half year to $650 million compared with the prior December half,but it was the March quarter performance that confirmed that Star was losing market share to pubs and clubs,which are not subject to the card-based,know-your-customer requirements being implemented across Star’s casinos.
Star said that revenue plunged 25 per cent for the December half-year,“reflecting challenging trading conditions due to the implementation of casino operating reforms[including mandatory carded play and cash limits which were implemented at The Star Sydney last year] and further loss of market share”.
It said this created “an uneven competitive environment with pubs and clubs,which continues to negatively impact on operating performance”. Mandatory carded play reforms have not been introduced in Queensland yet,but other significant reforms,such as know-your-customer,have.
Star chief executive Steve McCann told investors on a conference call after the results were released that Star’s financial peril had affected customer numbers.
Loading
“Clearly our performance continues to be very challenged as we navigate to a very difficult trading environment,” McCann said.
“The ongoing impact of regulatory reforms,the impact of mandatory carded play,cash limits,time limits,and our loss of market share across the Sydney and Gold Coast properties has had a material impact on the business,and we are continuing to operate through very challenging conditions.”