In This Article:
-
Normalized Revenue: $650 million, down 25% from H1 FY24.
-
EBITDA Loss: $26 million for H1 FY25.
-
Statutory Net Loss: $302 million after significant items of $166 million.
-
Star Sydney Revenue: $362 million, down 19.5% from H1 FY24.
-
Domestic Gaming Revenue (Sydney): Down 32%.
-
Non-Gaming Revenue (Sydney): $71 million, down 3% from the prior period.
-
Star Gold Coast Revenue: $218 million, down 8% from H1 FY24.
-
Domestic Gaming Revenue (Gold Coast): Down 13%.
-
Star Brisbane EBITDA Loss: $20 million in H1 FY25.
-
Available Cash: $98 million as of April 11, 2025.
-
Strategic Investment: $300 million from Bally and Investment Holdings, with $100 million received in April 2025.
-
Q3 FY25 Revenue: $271 million, down 9% from the prior quarter.
-
Q3 FY25 EBITDA Loss: $21 million.
-
Cost-Out Program: Achieved $100 million reduction in annualized cost savings.
Release Date: April 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
The Star Entertainment Group Ltd (ASX:SGR) secured a $300 million strategic investment from Bally and Investment Holdings, providing critical liquidity.
-
The company has achieved a $100 million reduction in annualized cost savings, which is part of their cost-out program.
-
The Star is focusing on regaining market share and reactivating customers through various revenue initiatives.
-
The transaction with Bally and Investment Holdings is structured to provide liquidity in the short and medium term, with a coupon of 9% per annum.
-
The Star will receive full ownership of two new hotels on the Gold Coast, enhancing their integrated offering in the region.
Negative Points
-
The Star reported a normalized revenue of $650 million, down 25% from the previous year, and an EBITDA loss of $26 million for the period.
-
The company experienced a statutory net loss of $302 million after significant items.
-
The Star Sydney's revenue declined by 19.5%, with domestic gaming revenue down 32% due to regulatory changes and loss of market share.
-
The Star Gold Coast's revenue was down 8%, impacted by increased controls, industry reform, and macroeconomic conditions.
-
The company's cash position was negatively impacted by cash outflows from operations, CapEx, and finance costs, with available cash at $98 million as of April 11, 2025.
Q & A Highlights
Q: Is there a potential for current investors to buy shares at the same rate of $0.08 as the recent share issue? Also, is there a plan to get back to a margin LVR rating on the ASX? A: We are not currently contemplating a broader share issue at this point in time prior to the vote. Our focus is to get shareholder approval for the transaction to continue and for the liquidity injection we require. Regarding the margin LVR, we don't have an answer at the moment but will follow up on that. - Frank Krile, CFO