Star Entertainment Group Limited · ASX:SGR
Star Entertainment — Echo Entertainment Group — Citigroup Aust & NZ Investment Conference 2011
22 slides from Star Entertainment's conference presentation, Oct 25, 2011
Slide 1: Echo Entertainment Group Profile
Echo Entertainment Group Profile Citigroup Aust & NZ Investment Conference 25 October 2011
Slide 2: Summary
Summary □ Echo Entertainment is a leading Australian entertainment and gaming company □ Echo operates four long-term casino licences in attractive markets that provide substantial strategic value □ Echo has a strong growth profile over the next six years that is driven by major redevelopment of key
Slide 3: Echo Entertainment Group Profile
Echo Entertainment Group Profile □ Former casinos division of Tabcorp, Echo property profiles as at 31 December 2010 demerger effective June 2011 The Star Jupiters Hotel & Treasury Hotel & Jupiters Total for Echo Townsville Casino Casino Tables 202 96 91 26 415 □ Owns and operates four casinos in MT
Slide 4: Strategic use of entertainment to leverage assets
Strategic use of entertainment to leverage assets □ Secure long-term licences in attractive markets are Echo’s most valuable assets – but can be better developed and better utilised by increasing customer traffic □ Real expansion opportunities at The Star, Queensland and VIP – to start being realise
Slide 5: Making The Star an entertainment destination
Making The Star an entertainment destination □ $870m investment underway to transform The Star to a world class entertainment destination □ Gaming concessions secured (unlimited tables, re-classification of MTGMs) provide a strong base for investment - 60% expansion to MGF □ Transformational investm
Slide 6: Star – Successive openings in 2011/2012
Non-gaming Star – Successive openings in 2011/2012 Gaming Project Star to be completed with major product opening between mid September and Christmas FY12 July August September October November December 2H12 FY13 Opening Today Vestibule Gaming Area 5A Pirrama Rd Entry Retail Phase 3 Pyrmont St Entry
Slide 7: Opened Sept – Pirrama Road Entrance
Opened 15 Sept – Pirrama Road Entrance 7
Slide 8: Opened Sept – Balla & Black
Opened 15 Sept – Balla & Black 8
Slide 9: Opened Sept – Cherry
Opened 15 Sept – Cherry 9
Slide 10: Opened Sept – Retail & Café Court
Opened 15 Sept – Retail & Café Court 10
Slide 11: Revenue trajectory for The Star since openings
Revenue trajectory for The Star since openings □ Initial performance of new areas pleasing and in-line with expectations □ Gaming revenue (ex PGR and VIP) up 10.5% on pcp from 16 September to 16 October □ PGR and VIP more volatile on a week-to-week basis given win rates, but both areas tracking up s
Slide 12: The Star restaurants – operating statistics
The Star restaurants – operating statistics □ Initial performance of new restaurants pleasing with little cannibalisation of existing offer □ Black by Ezard - 177 covers/day, average check of $119. Average daily revenue $21,027 □ Balla - 210 covers/day, average check of $86. Average daily revenue $1
Slide 13: The Star MGF bars – Operating statistics
The Star MGF bars – Operating statistics □ Bars performing strongly since opening, particularly during long weekend □ Cherry bar initial performance is solid with average daily revenue of $8,434 □ Rock Lily continues to build momentum with average daily revenue of $13,471 □ Sports 24/7 is benefiting
Slide 14: New areas to open Oct 25 – The Darling
New areas to open Oct 25 – The Darling 14
Slide 15: New areas to open Oct 25 - Restaurants and Spa
New areas to open Oct 25 - Restaurants and Spa Momofuku Seiobo Sokyo Spa relaxation area Spa reception 15
Slide 16: New areas to open December 2011 - VIP salons
New areas to open December 2011 - VIP salons 16
Slide 17: New areas to open next year - Events centre
New areas to open next year - Events centre 17
Slide 18: Focus on entertainment: major events
Focus on entertainment: major events □ Entertainment a key pillar of our strategy. Events in 1HFY12 include: □ Elton John □ Stevie Wonder □ Placido Domingo □ Flo Rida □ Al Pacino □ Kevin Spacey in Richard 3 □ Olivia Newton John □ Janet Jackson □ Vanilla Ice □ Salt & Pepa 18
Slide 19: Icon – Proposed $625m expansion of Qld casinos
Icon – Proposed $625m expansion of Qld casinos □ Significant refurbishment of Echo’s Queensland assets planned □ Investment supported by a number of gaming concessions, the bulk of which have now been approved: □ 500 additional Electronic Gaming Machines subject to implementation of a voluntary pre-
Slide 20: International rebate business growth opportunity
International rebate business growth opportunity □ VIP segment provides large growth opportunity both through improved share and underlying market growth □ Investment underway will make properties globally competitive in the VIP segment □ Echo’s share of the VIP market in Australia/NZ has tracked be
Slide 21: Summary
Summary □ Echo Entertainment is a leading Australian entertainment and gaming company □ Echo operates four long-term casino licences in attractive markets that provide substantial strategic value □ Echo has a strong growth profile over the next six years that is driven by major redevelopment of key
Slide 22: Disclaimer
Disclaimer Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with Echo Entertainment Group’s annual report and other disclosures made via the Australian Securities Exchange. This presentation is prepared for i
Echo Entertainment Group — Citigroup Aust & NZ Investment Conference 2011 on 6ix