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.

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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.

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