The Star Entertainment Group (SGR) H1 2025 earnings summary

Executive summary

• H1 FY25 normalised revenue was $650 million, down 25% year-over-year, mainly due to challenging trading conditions, regulatory reforms, and loss of market share.

• Statutory net loss was $301.9 million after significant items of $166 million, reflecting negative operating leverage, elevated costs, and regulatory impacts.

• A $300 million strategic investment from Bally's and Investment Holdings was announced to provide critical liquidity, with $100 million already received and the remainder pending shareholder and regulatory approval.

• The company exited its equity interest in the Destination Brisbane Consortium (DBC), consolidating Gold Coast assets and gaining full ownership of two new hotels.

• The Star Sydney and Gold Coast licences remain suspended, with remediation plans in progress and regulatory oversight ongoing.

Financial highlights

• H1 FY25 normalised revenue: $650 million, down 25% from H1 FY24; domestic gaming revenue fell 32%.

• EBITDA loss: $26.4 million; statutory net loss: $301.9 million after significant items.

• Star Sydney revenue: $362.2 million, down 19.5% year-over-year; domestic gaming revenue down 23%.

• Star Gold Coast revenue: $218.2 million, down 8.4% year-over-year; EBITDA fell 59.4% to $18.1 million.

• Net debt at 31 December 2024 was $171.1 million, compared to net cash of $30 million at June 2024.

Outlook and guidance

• Material uncertainty remains regarding going concern, dependent on completion of the $300 million strategic investment, asset sale proceeds, and regulatory approvals.

• Ongoing cost-out initiatives and remediation efforts are expected to continue.

• Remediation progress and regulatory compliance are critical for regaining casino licences and future operations.

• Ongoing regulatory and legal matters, including AUSTRAC and ASIC proceedings, present material uncertainties.

• Focus on regaining market share, reactivating customers, and improving non-gaming revenue.