The Star Entertainment Group (ASX:SGR) Announces H1 FY25 Results
Financial Performance
The Star Entertainment Group reported a normalised revenue of $650 million for H1 FY25, accompanied by a normalised EBITDA loss of $26 million. The statutory net loss stood at $302 million, with a normalised loss after tax of $136 million before significant items. Revenue decreased by 25% compared to the prior corresponding period, driven by challenging trading conditions and market share loss.
Trading Update
Trading performance declined in H1 FY25, notably due to mandatory carded play and cash limits at The Star Sydney, casino operating reforms, and market share loss at The Star Gold Coast. Revenue in Q3 declined by 9% across the Group compared to Q2, with a 13% drop at The Star Gold Coast and an 8% decline at The Star Sydney.
Liquidity
As of 11 April 2025, The Star had available cash of $98 million. The Group executed a $300 million strategic investment agreement with Bally’s Corporation and Investment Holdings Pty Ltd, receiving $100 million on 9 April 2025. Additional proceeds are pending shareholder approval. The sale of The Star Sydney Event Centre for $60 million has been completed, with proceeds held in escrow awaiting shareholder consent.
Update on Key Initiatives
The Star is progressing the exit from the Destination Brisbane Consortium and focusing on implementing the strategic investment by Bally’s and Investment Holdings. Key initiatives include driving revenue, enhancing market share, embedding cost savings, and delivering a revised remediation plan approved by the Office of Liquor and Gaming Regulation.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. 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 Scott Phillips.
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