Insights

How did the Star (ASX:SGR) share price respond last earnings season

Star Entertainment delivers its full 2021 financial year results tomorrow.
The post How did the Star (ASX:SGR) share price respond last earnings season appeared first on The Motley Fool Australia. –

The Star Entertainment Group Ltd (ASX: SGR) share price is in the red year-to date, down more than 9% since the start of 2021. However, over the past 12 months, Star shares are up around 22%.

This compares to the S&P/ASX 200 Index (ASX: XJO) lift of almost 24% over the same period.

The Star share price is in the spotlight today as the ASX 200 listed hotel and casino operator prepares to release its full year 2021 financial results tomorrow.

With that in mind, we take a look at how Star’s share price tracked in the wake of last year’s full year financial results.

What did Star report in FY20?

Last year, as we’ll likely see again this year, COVID-19 lockdowns and social distancing measures impacted core aspects of Star’s financial results.

Nonetheless, the Star share price gained 3.9% on 20 August 2020, the day it released its full year results.

Star reported strong results from July 2019 through to February 2020, before the pandemic began to bite. But following the stay at home orders that swept across Australia in March last year, revenues and profits tumbled.

The company deferred its first half dividend and was forced to stand down some 90% of its staff. In July 2020, the company said its VIP volumes were only 5% of volumes from the prior year, as international travel came to stop.

Profits, therefore, were down 46% year-on-year.

Other key results impacting the Star share price for FY20

Net revenue down 23.3% from the previous year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $430 million, down 22.8% year-on-year.
No final dividend was declared.

The dividend deferral was part of an agreement that saw its debt covenant waived, with the company unable to pay out to shareholders until its gearing ratio below 2.5 times. Star’s last dividend payment of 10.5 cents per share, fully franked, was made on 25 February 2020.

Since releasing its FY20 results on 20 August last year, the Star share price is up more than 15%.

The post How did the Star (ASX:SGR) share price respond last earnings season appeared first on The Motley Fool Australia.

Should you invest $1,000 in Star right now?

Before you consider Star, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Star wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Which ASX shares are the biggest movers on the ASX 300 today?

What’s lifting the Star (ASX:SGR) share price today?
Why AGL, PointsBet, Premier Investments, & Star shares are charging higher

3 reopening ASX share ideas as potential buys

Here are the 10 top moving ASX shares on Monday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!