The Star Entertainment Group expects Q4 revenue to be down 3.3%

06/25/24

The company expects revenue to be between AU$1.67bn (US$1.11bn) and AU$1.68bn (US$1.12bn).

Australia.- The Star Entertainment Group has released a financial update announcing that it expects revenue for the fourth quarter of the year to be between AU$1.67bn (US$1.11bn) and AU$1.68bn (US$1.12bn). That would be down 3.3 per cent in year-on-year terms and down 4.3 per cent sequentially.

Normalised group EBITDA for the financial year is expected to be between AU$165m (US$110m) and AU$180m (US$120m). Revenue from premium gaming rooms (PGR) is also expected to be down 16.5 per cent across the group.

The company said the main gaming floor (MGF) has shown “a sound performance” with revenue expected to be up 5.2 per cent in year-on-year terms, but it has not been sufficient to offset the overall decline. At The Star Sydney PGR revenue is expected to be down 13.2 per cent while MGF revenue is expected to by up by 6.3 per cent, resulting in a total revenue decrease of 0.9 per cent.

At Star Gold Coast, the forecast is an overall revenue decrease of 4.9 per cent and at Treasury Brisbane 6.9 per cent. Monthly operating expenses have remained high compared to the first half of the fiscal year 2024, due to ongoing remediation efforts. Average monthly operating expenses are expected to be approximately AU$92.5m (US$61.55m).

The Star said it plans to accelerate initiatives aimed at reducing the operating cost base and reported it is progressing with negotiations for the sale of assets, including the Treasury casino, hotel, and car park. The company has started the process to sell the Festival Car Park in Brisbane and is reviewing the potential sale of other non-core assets.

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The Star Entertainment Group