The Star Entertainment revenue drops 18% for Q1 FY25 to AU$351m
2024 Annual Report highlights the difficult year the operator has faced.
Key points:
– Revenue sees decline in Q1 FY25, but EBITDA takes a big hit
– The Star Sydney had a particularly difficult period
– Annual Report highlights “challenging trading conditions” for its financial performance
The Star Entertainment has released its Q1 FY25 report, as well as its 2024 Annual Report, highlighting a challenging couple of months.
Q1 FY25
In the first quarter of FY25, the group reported revenue of AU$351m (US$231m), representing a decrease of 18% year-on-year, while this figure was also a drop-off of 11% compared to the last quarter.
Looking at EBITDA, however, this experienced a larger decline, going down 130% to a loss of AU$18m when compared to the same period last year, and was down from AU$23m recorded in Q4 FY24.
The operator has pointed to a challenging operating environment regarding this, as well as pointing to the implementation of mandatory carded play and cash limits.
During the quarter, The Star Brisbane started its phased opening at the end of August, while Treasury Brisbane Casino permanently closed a couple of days before. Just after the quarter period, The Star received a AU$15m fine related to failings at its Sydney casino.
2024 Annual Report
The group’s Annual Report for 2024 also emphasised the difficult period, with domestic revenue down 10.2% to AU$1.67bn, while statutory EBITDA decreased 45% to AU$174.7m.
Again, challenging trading conditions have been underlined for this, while the operator also highlighted cost of living pressures and casino operating reforms, especially premium gaming rooms which it has said is “in particular trending downwards.”
Star Entertainment’s share price was 0.2550 AUD as of this morning, 5.6% down from Monday’s closing price of 0.2700 AUD (09:32 UK time).
Good to know: The Star Entertainment was suspended for a short period in September from the Australian Securities Exchange (ASX)
Comments
Reflecting on the Annual Report, The Star Entertainment Group Chairman Anne Ward provided some comments: “The first half of the year was focused on the commencement of the Remediation Plan, although it was quickly evident that a refinement of the plan would support more meaningful outcomes through better sequencing, planning and focus on strategic priorities.
“Coming out of the recent Bell Two Inquiry, and having reset our Remediation Plan, we are absolutely focused on the path ahead to drive sustainable long term cultural transformation for the company. To facilitate this we’ve made considerable changes within The Star Entertainment Group (TSEG) to support remediation efforts and set the business on a new, stronger path for the future.
“While 2024 has delivered a convergence of challenges — including regulatory change and adverse trading conditions which are reflected in our results — we are emerging from this period with a clarity of focus and commitment to the task ahead.
“It will take time, dedication and collaboration at all levels, but with the right structure in place, our new management team and the Board are working closely with our regulators, special manager and key stakeholders to set things right and do what is required to regain our licences to operate our casinos in Queensland and New South Wales.”
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