The Star Entertainment Group yet to reach agreement for sale of Destination Brisbane stake
The company has not yet reached an agreement with its joint venture partners.
Australia.- The Star Entertainment Group has issued a statement saying it has not yet reached an agreement with joint venture partners,Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International (FEC) for its 50 per cent stake in Destination Brisbane, owner of The Star Brisbane integrated resort.
The company reiterated that it received offers from its joint venture partners on February 10. However, its board concluded that the proposals did not provide sufficient value for the company. On Thursday (March 4), media reported that Chow Tai Fook Enterprises and the Far East Consortium would provide the company with a loan of AU$50m (US$31.6m) to help the Star avoid administration.
A week ago, the casino operator announced a trading halt due to speculation about its finances. The company said it was exploring potential solutions to improve its liquidity position.
For Q2, the star posted revenue of AU$299m (US$185.4m), down 15 per cent sequentially. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were negative AU$8m (US$5m) compared to AU$18m (US$11.84m) in the previous quarter.
The Star Sydney revenue was AU$176m (US$109.1m), down 6 per cent sequentially and 23 per cent in year-on-year terms. EBITDA was negative AU$4m (US$2.5m) compared to negative AU$21m (US$13m) in the first quarter. The Star Gold Coast revenue was AU$111m (US$68.8m), down 7 per cent year-on-year but up 3 per cent compared to the previous quarter. EBITDA was positive at AU$11m (US$6.8m) but down 48 per cent yearly.
