The Star Entertainment Group (SGR) Trading Update summary

Leadership and management updates

• David Foster has stepped down from all responsibilities, with Anne Ward and Neale O’Connell assuming additional duties until a new CEO is appointed.

• The search for a new group CEO is well advanced, with an announcement expected soon.

• Jeannie Mok has been appointed as Chief Operating Officer, bringing transformation experience.

Financial performance and guidance

• FY 2024 group revenue is expected between AUD 1,675 million and AUD 1,685 million, reflecting ongoing challenging trading conditions.

• Underlying/normalised group EBITDA for FY 2024 is forecast in the range of AUD 165 million to AUD 180 million, impacted by elevated operating expenses from remediation and transformation activities.

• Q4 FY24 group revenue projected to be 4.3% below Q3 FY24 and 3.3% below Q4 FY23, driven by economic headwinds and cost of living pressures.

• Premium Gaming Rooms revenue expected to decline 16.5% year-on-year, while Main Gaming Floor revenue is up 5.2% but insufficient to offset overall declines.

• Operating expenses in H2 are elevated, with monthly costs rising from $90.3 million in 1H FY24 to $92.5 million in Q4 FY24 due to ongoing remediation and transformation.

Operational trends and initiatives

• Main gaming floor performance has improved, while premium/private gaming has declined, a trend consistent since April.

• Visitation on the main gaming floor has remained strong.

• Opportunities for cost efficiencies are being explored, with a focus on remediation and transformation, and initiatives are being expedited to further reduce the operating cost base.