The Star Entertainment Group (SGR) H1 2025 earnings summary

Executive summary

• H1 FY25 normalised revenue was $650 million, down 25% year-over-year, with a normalised EBITDA loss of $26 million and a statutory net loss of $302 million after significant items of $166 million, reflecting challenging trading conditions, regulatory reforms, and market share loss.

• The Group faced significant regulatory, operational, and financial challenges, including casino licence suspensions, regulatory penalties, and ongoing remediation requirements.

• Liquidity pressures persisted, with available cash at $98 million as of 11 April 2025, supported by asset sales and the initial tranche of a $300 million strategic investment from Bally's and Investment Holdings.

• The Group exited its equity interest in the Destination Brisbane Consortium (DBC), consolidating Gold Coast assets and gaining full ownership of two new hotels.

• The Star Brisbane opened in August 2024, replacing Treasury Brisbane, which closed in the same month.

Financial highlights

• H1 FY25 group revenue was $650 million, down 25% year-over-year; domestic gaming revenue fell 32%.

• EBITDA loss was $26 million; statutory net loss was $302 million after significant items of $166 million.

• Star Sydney revenue: $362.2 million, down 19.5% year-over-year; EBITDA loss of $24.6 million.

• Star Gold Coast revenue: $218.2 million, down 8.4% year-over-year; EBITDA of $18.1 million.

• Treasury Brisbane revenue: $54.8 million, down 69.1% due to closure; The Star Brisbane operator fee revenue: $14.4 million.

Outlook and guidance

• The Group's ability to remain a going concern depends on successful completion of the $300 million strategic investment, asset sales, lender support, and regulatory approvals.

• Focus on regaining market share, reactivating customers, and embedding $100 million in cost savings.

• Trading conditions remain soft, with Q3 FY25 revenue and EBITDA continuing to deteriorate due to seasonality, reduced visitation, and weather-related property closures.