The Star results: revenue down 10%
Revenue for the fiscal year 2024 was AU$1.67bn (US$1.13bn).
Australia.- The Star Entertainment Group has shared financial results for its fiscal year 2024. Revenue declined 10 per cent in year-on-year terms from AU$1.86bn (US$1.26bn) to AU$1.67bn (US$1.13bn). The company attributed this to cost of living pressures, casino operating reforms and loss of market share.
The company posted a net loss of AU$1.68m (US$1.14m). EBITDA (before significant items) declined 45 per cent to AU$175m (US$119m).
The Star Sydney revenue was AU$878m (US$597m), down 11 per cent year-on-year. EBITDA was AU$52m (US$35.3m), down 59 per cent. The Star Gold Coast revenue was AU$456m (US$309.1m), down 10 per cent, while EBITDA was AU$71m (US$48.2m), down 33 per cent. Treasury Brisbane revenue was down 8 per cent to AU$344m (US$233.9m), with EBITDA of AU$52m (US$35.3m), down 38 per cent.
The company noted that the New South Wales Independent Casino Commission (NICC) is considering its next steps following Adam Bell SC’s second inquiry. On September 13, the NICC served The Star with a show cause notice. The casino operator expects to respond on September 27.
On August 29, the company soft-opened The Star Brisbane at Queen’s Wharf. The first phase of opening included the Neville Bonner Bridge, which connects South Bank to The Star Brisbane’s dining area, The Terrace, hotel The Star Grand and a public art gallery. Further areas are expected to open progressively over the course of FY25 and thereafter.
Steve McCann, The Star Group CEO (subject to regulatory approvals), stated: “There are a number of significant challenges currently facing the business from an earnings, liquidity and balance sheet perspective. We recognise and appreciate the support provided to date by our stakeholders as The Star puts in place a new management team and strategy to implement a remediation and transformation program, and return the company to a more sustainable footing.
“We have identified a range of initiatives to improve business performance and cashflow, as well as providing the organisation with additional liquidity. However, time and flexibility is required to implement these initiatives.
“As we work through these initiatives, the Board and management team remain focused on demonstrating suitability to hold our casino licenses and regaining the trust and support of our regulators and the broader community while seeking to enhance shareholder value .”
The Star secures US$136m debt package
In a separate filing, The Star Entertainment Group announced that its corporate lenders have executed a commitment letter for a new debt facility worth up to AU$200m (US$136m). The company’s existing AU$450m (US$306m) facility will be reduced to AU$334m (US$227m).
The new debt facility, with a maturity date of December 2027, will be distributed in two phases of AU$100m (US$68m) each. The first tranche is expected to be available, subject to conditions precedent, from the end of October 2024.
