FY2019 Group Performance

Three Year Statutory Financial Results Summary1

REPORTED RESULTSFY17FY18FY19
$m$m% vs pcp2$m% vs pcp
Gross Revenue2,432.22,579.5 6.12,514.0 2.5
Net Revenue32,110.02,084.01.22,158.1 3.6
EBITDA599.7484.419.2552.8 14.1
EBIT435.2297.231.7347.0 16.8
Significant Items (after tax)8.936.7312.418.4 49.9
NPAT (before significant items)273.3184.832.4216.4 17.1
Earnings Per Share32.0 cents17.5 cents45.321.6 cents 23.4
Full Year Dividend16.0 cents20.5 cents28.120.5 cents  –
GROUP PERFORMANCE HIGHLIGHTS
  • Increased statutory net revenue and earnings
  • Total FY2019 dividends of 20.5 cents per share, unchanged from FY2018 record levels
  • Continued effective execution of growth strategy.
NORMALISEDSTATUTORY
$m% vs pcp$m% vs pcp
Gross Revenue2,500.97.22,514.02.5
Net Revenue2,160.50.92,158.13.6
EBITDA556.52.0552.814.1
NPAT223.78.4198.033.7
SOLID DOMESTIC BUSINESS OFFSET BY VIP
  • Domestic EBITDA up 5.4% on pcp with margin expansion, represents 88% of Group EBITDA
  • Slots share gains in Brisbane and Gold Coast, consolidation in Sydney.
  • Tables revenue up 4.0% on pcp (PGR5 up 9.1% on pcp)
  • VIP turnover impacted by market conditions. Unique VIP customers up 10% on pcp to record levels, offset by lower spend per visit
RECORD DIVIDEND PAYMENT MAINTAINED IN FY2019
  • Final dividend of 10.0 cents per share fully franked
  • Total FY2019 dividends of 20.5 cents per share fully franked
  • Total dividends unchanged from FY2018 record levels, reflecting confidence in the business and balance sheet strength.
RESTRUCTURE BENEFITS UNDERWAY
  • Approximately $45 million annualised cost benefits from restructuring by 31 December 2019
  • Customer and employee risk management in place.
CAPITAL PLANS ON SCHEDULE AND DE-RISKED
  • Queen’s Wharf Brisbane – approximately 60% under lump-sum contract, further approximately 28% by end FY2020
  • The Star Gold Coast – construction of first joint venture tower has commenced, second joint venture tower in pre-sales stage
  • The Star Sydney – Sovereign Resort expansion and upgrade to complete in 4Q FY2020.
CAPITAL EFFICIENCY IMPROVED
  • Growth strategy through capital-efficient investments with partners progressed – Queen’s Wharf Brisbane, Gold Coast masterplan, Sydney
  • Capital expenditure optimised for returns. FY2020-21 plans reduced by approximately $125 million (excluding joint venture contributions).

PROPERTY PERFORMANCE HIGHLIGHTS

SYDNEY

NORMALISEDSTATUTORY
$m% vs pcp$m% vs pcp
Gross Revenue1,631.413.01,567.89.7
Net Revenue1,374.54.01,308.30.5
EBITDA367.45.7307.67.6
  • Domestic growth offset by declines in VIP impacted by market conditions
  • Domestic revenue up 3.1% on pcp, domestic EBITDA up 5.0% on pcp
  • Slots revenue up 3.4% on pcp (PGR up 9.4% on pcp), consolidating market share
  • Tables revenue up 4.0% (PGR up 8.6% on pcp)
  • International VIP Rebate business performance affected by market conditions.
  • Unique VIP customers down 2%, spend per visitor declined, turnover down 39.7% on pcp.

QUEENSLAND

NORMALISEDSTATUTORY
$m% vs pcp$m% vs pcp
Gross Revenue869.56.0946.212.3
Net Revenue786.05.2849.810.5
EBITDA189.15.9245.223.5
  • Continued growth – normalised and statutory net revenue and EBITDA
  • All segments contributed to growth. Gold Coast ramp up continuing
  • Slots market share increased at both Treasury Brisbane and The Star Gold Coast
  • Tables revenue up 3.9%
  • New facilities drive International VIP Rebate business performance. Unique VIP customers up over 100%, turnover up 23.5% on pcp.

1 For further information, please refer to the financial report contained in the Annual Report for the relevant financial year.
2 Prior comparable period.
3 Net of player rebates and promotional allowances following the adoption of AASB 15 from 1 July 2018.  FY2017 comparable have also been restated.
4 Normalised results reflect the underlying performance of the business as they remove the inherent win rate volatility of the International VIP Rebate business Normalised results are adjusted using an average win rate of 1.35% on actual turnover, taxes and revenue share commissions, unless otherwise stated, and are before significant items. Normalising for revenue share commissions commenced in 1H FY2019.  Normalising for revenue share commissions results in an increase in commissions of $20 million in FY2018.
5 Private Gaming Room.