Star Entertainment Group has delayed the $2 billion expansion of its Gold Coast masterplan by at least 12 months following a $1.2 billion half year loss.
The masterplan includes four new towers, the first of which opened in late 2021 and includes The Dorsett hotel and Star Residences. The second tower is under construction.
The latest setback follows a $100 million fine the group received in December from the Queensland government following an inquiry into its casino operations.
“The (Gold Coast) is our best-performing property by achieving a 30 per cent uplift on pre-Covid levels and it reinforces the investment in new hotels, the food and beverage at the property and the way we have worked with the convention market,” said Star CEO Robbie Cooke.
“If you put in the investments, you get the outcome, so we are very pleased with this performance.
“The Gold Coast has smashed it out of the park.”
The majority of Star’s poor performance was a $988 million writedown of its Sydney casino which is being impacted by a NSW government proposal to lift the state’s casino tax rate.
The Star is now looking at launching a $800 million capital raising from shareholders.