Third Quarter Revenue Decreases by 9% for The Star Entertainment Group
The Star Entertainment Group took a hit in their third quarter FY2025, recording a 9% revenue decline to reach AUD$271 million. Here's a quick rundown of the financials:
The Numbers Game
- This quarter's EBITDA loss clocked in at A$21 million, contrasting the A$38 million profit seen in Q3 FY2024.
- Despite the decline, operating expenses saw a 3% reduction, mainly due to lower corporate costs.
- But things aren't all sunshine and roses. The company's precarious financial situation leaves it with "material uncertainty" about its future as a going concern.
The Root Causes
- Poor patronage at their flagship properties was a significant factor. The Star Sydney, for example, saw a quarterly revenue drop of 8% and daily revenue slumped 17% after the August 2024 cash limits.
- Ex-Tropical Cyclone Alfred didn't help matters, as it forced closures at Gold Coast and Brisbane venues, causing an A$1 million EBITDA loss in Brisbane alone.
- Tighter gambling regulations also played a role, with onsite cash limits reduced to A$1,000 at Sydney’s venue.
Looking ahead, The Star Entertainment Group is seeking a lifeline in the form of a A$250–300 million rescue package from Bally’s Corporation and the Mathieson family.
Stay tuned for more updates on this developing story. Keep money in your pockets and fingers crossed for better days ahead!
- The Star Entertainment Group, despite efforts to reduce operating expenses, posted a 9% decline in revenue for their third quarter FY2025, reaching AUD$271 million, an industry trend that includes a decline in the banking-and-insurance sector.
- The precarious financial situation of The Star Entertainment Group, as outlined in their Q3 FY2025 report, includes material uncertainty about their future as a going concern, a concern that extends beyond their industry and into the realm of finance.
- Subscription to The Star Entertainment Group's services saw a downturn in Q3 FY2025, partly due to the decline in patronage, as seen in a 8% quarterly revenue drop at The Star Sydney and a 17% slump in daily revenue following the August 2024 cash limits.
- In an attempt to counter these declines, The Star Entertainment Group is seeking a rescue package of A$250–300 million from Bally’s Corporation and the Mathieson family, a move that signals the need for strategic partnerships and potential subscription-based models in the future of the industry.
