The Star Entertainment Group (SGR) H1 2025 earnings summary

Executive summary

• H1 FY25 normalised revenue was $650 million, down 25% year-over-year, with a statutory net loss of $301.9–$302 million after significant items of $166 million, reflecting challenging trading conditions, regulatory reforms, and market share loss.

• EBITDA before significant items was a loss of $26–$26.4 million, with negative operating leverage and elevated costs.

• The Group faced significant regulatory, operational, and financial challenges, including casino licence suspensions, regulatory penalties, and ongoing remediation requirements.

• A $300 million strategic investment from Bally's and Investment Holdings was announced to provide critical liquidity, with $100 million 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.

Financial highlights

• Group revenue for H1 FY25 was $649.6–$650 million, down 25% year-over-year; domestic gaming revenue fell 32%.

• EBITDA loss: $26–$26.4 million; statutory net loss: $301.9–$302 million after significant items.

• Star Sydney revenue: $362.2 million, down 19.5% year-over-year; EBITDA loss of $24.6 million.

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

• Treasury Brisbane revenue: $54.8 million, down 69.1% due to closure; EBITDA nil.

Outlook and guidance

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

• The Group is focused on revenue-generating initiatives, embedding $100 million in cost savings, and ongoing remediation efforts.

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