The Star Entertainment Group (SGR) H2 2025 earnings summary

Executive summary

• Group revenue fell 29% year-on-year to $1.2 billion, driven by a 37% decline in gaming revenue and loss of market share.

• Statutory NPAT was a loss of $471.5 million, and EBITDA before significant items was a loss of $77.1 million.

• Financial performance deteriorated due to regulatory reforms, remediation costs, and competitive pressures.

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

• Cost-out program delivered $100 million in annualized savings, reducing annualized corporate costs by 32% from 1Q25 to 4Q25.

Financial highlights

• Normalized group revenue declined 29% year-on-year to $1.2 billion, with gaming revenue down 37%.

• EBITDA loss before significant items was $77.1 million; statutory NPAT loss was $471.5 million after $212 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 the closure of Treasury Brisbane Casino.

• 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 some improvement over Q4 FY2025 averages.

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

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

• Focus on driving revenue growth through customer initiatives and further cost reductions in FY26.