Star Entertainment net profit down 71% in FY24 report
The group’s corporate lenders have executed a commitment letter for a new debt facility of up to AU$200m (US$137.4m) in two-tranches.
The Star Entertainment Group has released its financial figures for FY24, highlighting a difficult period for the operator.
Total revenue during the period reached AU$1.69bn, representing a 10% drop year-on-year, which The Star indicated is because of factors such as cost of living pressures, casino operating reforms and loss of market share.
Meanwhile, EBITDA experienced an even sharper decline, down 45% to AU$175m. But, the operator has stated that both EBITDA and revenue totals were in line with previously announced earnings guidance.
The three properties with financial figures for the period, namely The Star Sydney, The Star Gold Coast and Treasury Brisbane all saw drop-offs in both revenue and EBITDA. The Treasury Brisbane closed at the end of August ahead of the opening of The Star Brisbane.
However, it was net profit after tax that saw the most significant fall from FY23, being valued at AU$12m for FY24, representing a decrease of 71%.
Statutory net loss for the full year was AU$1.69bn after significant items, which was put down to challenging trading conditions as well as a number of recent and upcoming regulatory changes. However, this is up 31% from the AU$2.44bn loss reported last year.
The company also referenced the fact that results overall have been impacted by trading performance taking a hit over the second half of FY24, which has continued into the start of FY25.
The Star Group CEO (subject to regulatory approvals) Steve McCann said: “There are a number of significant challenges currently facing the business from an earnings, liquidity and balance sheet perspective. We recognise and appreciate the support provided to date by our stakeholders as The Star puts in place a new management team and strategy to implement a remediation and transformation program, and return the company to a more sustainable footing.
“We have identified a range of initiatives to improve business performance and cashflow, as well as providing the organisation with additional liquidity. However, time and flexibility is required to implement these initiatives.
“As we work through these initiatives, the Board and management team remain focused on demonstrating suitability to hold our casino licences and regaining the trust and support of our regulators and the broader community while seeking to enhance shareholder value.”
In related news, Flutter Entertainment yesterday outlined its long-term growth plan and authorised a share buyback program of up to $5bn.
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