The Star Entertainment Group (SGR) H2 2025 earnings summary

Executive summary

• FY2025 net revenue was $1,187.5 million, with a statutory net loss of $471.5 million and an EBITDA loss (before significant items) of $77.1 million, reflecting a material deterioration in performance due to regulatory reforms, remediation costs, and loss of market share.

• Trading conditions worsened from regulatory changes, remediation program implementation, and competitive pressures.

• $300 million strategic investment from Bally's and Investment Holdings was approved, with $233 million received and $67 million pending regulatory approval.

• Achieved $100 million in annualized cost savings, reducing annualized corporate costs by 32% from 1Q25 to 4Q25.

Financial highlights

• Group revenue declined 29% year-over-year to $1,187.5 million, driven by a 37% fall in gaming revenue and market share loss.

• EBITDA loss before significant items was $77.1 million; statutory NPAT loss was $471.5 million after $212.4 million in significant items.

• Significant items included $108 million in DBC impairment, $71 million in funding costs, and $33 million in regulatory/redundancy costs.

• Operating expenses decreased by $109 million, reflecting cost reductions and asset closures.

• Group EBITDA margin (normalised) was -6.5%, down from 10.4% in FY24.

Outlook and guidance

• July 2025 group revenue was $92.1 million with an EBITDA loss of $7.4 million, showing slight improvement over Q4 FY25 averages.

• Near-term priorities include resolving AUSTRAC penalty, securing covenant waivers, completing asset sales, and restoring casino licenses.

• Additional cost-out initiatives and rolloff of remediation costs are expected to support future earnings.