The Star Entertainment Group (SGR) H2 2024 earnings summary

Executive summary

• Statutory EBITDA for FY24 was AUD 175 million, down 45% year-over-year, with a statutory loss of AUD 1.69 billion, including AUD 1.4 billion in impairments and significant items.

• Revenue declined 10% to AUD 1,678 million compared to FY23, reflecting loss of market share, regulatory changes, and a softer consumer environment.

• All properties experienced revenue and EBITDA declines, with The Star Sydney, Gold Coast, and Treasury Brisbane down 10.8%, 10.4%, and 8.1% in revenue, respectively.

• Business performance deteriorated further in the second half of FY24, with EBITDA for H2 at AUD 61 million, down 46% from H1, and negative EBITDA in July and August 2024.

• The Star Brisbane opened in August 2024, replacing Treasury Brisbane, with initial gaming revenues up relative to Treasury and further ramp-up expected.

Financial highlights

• FY24 revenue: AUD 1,678 million (down from AUD 1,868 million in FY23).

• Statutory net loss: AUD 1.69 billion (improved from AUD 2.44 billion loss in FY23), including AUD 1.4 billion in impairments.

• Impairments totaled AUD 337 million for Sydney, AUD 274 million for Gold Coast, and AUD 819 million for Brisbane.

• Operating expenses increased to AUD 301 million in FY24, up 40% from FY22, mainly due to increased spend on risk, controls, and transformation.

• Property-level EBITDA in FY24 was AUD 476 million before corporate and remediation costs.

Outlook and guidance

• Short-term liquidity runway secured through new debt facilities, with focus on cost reduction, asset sales, and capital raising.

• Mandatory carded play and reduced cash limits expected to further impact revenue as rollout continues.

• Over AUD 100 million in annualized cost savings targeted by March 2025, with further savings under review.

• Additional equity contributions of AUD 358 million required for Queen's Wharf completion, with further funding for ramp-up and debt servicing.

• Maintenance capex targeted at AUD 80 million for FY25, down from an average of AUD 105 million (FY22–FY24).