Star Entertainment Group has posted a $2.44 billion loss after it wrote down the value of its Sydney, Brisbane and Gold Coast casinos, despite an impressive lift in revenue.
The troubled casino operator on Tuesday reported gross revenue for the year ended June 30 increased 22 per cent to $1.87 billion.
But challenging operating conditions, higher casino taxes, increased discount rates and softer earnings left the gambling group with a whopping $2.17 billion non-cash impairment across its casino assets.
Star was also weighed down by a $595 million provision it tucked away for legal and regulatory costs it has incurred and expects to incur in future.
This does not include any provisions for a $420 million counterclaim brought by builder Multiplex against the Destination Brisbane Consortium, of which Star owns 50 per cent, for construction delays at its Queen's Wharf resort project.
Chief executive Robbie Cooke said to call it a challenging year would be an understatement.
"The consequences flowing from the damage to our social licence are felt daily by team members on multiple levels, reinforcing the critical need to understand the privilege and responsibility that comes with holding a casino licence," he said in an announcement to the ASX.
In February, Star booked a $1.6 billion writedown on its Sydney casino after a regulatory inquiry resulted in a $100 million fine and its licence being suspended in addition to an increase in NSW casino duty rates of up to 60.9 per cent imposed by the former coalition government.
But the NSW Labor government earlier in August gave The Star Sydney a $310 million tax reprieve after the company warned it would cause them to shut the venue down.
Under the new deal, Star will face a minor tax rise next year and again in 2027, as well as a 35 per cent cut of any gaming revenue above $1.125 billion per year, until the full value of the tax comes into effect in 2030.
In return, the gaming venue has promised to guarantee 3000 jobs for the seven-year period.
"I take my hat off to the current government for actually having the preparedness to look at the impact of those changes that (former treasurer) Matt Kean put forward and the impact that had on the viability of the business," Mr Cooke told AAP.
Star says the resolution of the duty rate uncertainty will help in its ongoing bid to refinance its debt.
The new arrangements are estimated to result in a $10 million impact in the financial year 2024.
Excluding the one-off loss, Star recorded underlying net profit of $41 million, reflecting a 34 per cent lift in underlying earnings before interest, tax, depreciation and amortisation to $317 million.
This was a slight improvement of the $280-310 million guidance the company initially flagged.
Revenue at The Star Sydney was up 26.5 per cent to $984 million, despite increased regulatory controls including increased guest exclusions, while The Star Gold Coast booked a 20 per cent lift and The Treasury in Brisbane was 15 per cent higher.
Mr Cooke said Star will bring back serving complimentary drinks to patrons in gaming rooms, which it dropped as part of its remediation process, after NSW regulators gave the green light.
Further remediation measures - including introducing cashless gaming in October - will affect Star's casino future earnings but are essential to maintaining its social licence.
"Those sort of steps are what the community is looking for and will enable us to make sure that our product is used in a safe way," Mr Cooke said.
Star shares rose 1.8 per cent to 96c in early trading.
