Key Financial Highlights
- Revenue: $299M (↓ 15% QoQ, ↓ 32% YoY).
- EBITDA: Loss of $8M (excluding significant items), an improvement from a $18M loss in Q1 FY25.
Performance Overview
- Group-Level Challenges:
- Revenue impacted by regulatory changes, particularly mandatory carded play and cash limits in NSW.
- Seasonal uplift in December and cost-reduction measures contributed to breakeven EBITDA in the last two months of Q2.
- Closure of Treasury Brisbane Casino weighed on revenue but reduced costs.
- Property Breakdown:
- The Star Sydney: Revenue down 6% QoQ, affected by regulatory changes. EBITDA improved due to cost cuts.
- The Star Gold Coast: Revenue grew 3% QoQ, supported by hospitality revenue. EBITDA rose 56% QoQ.
- The Star Brisbane: Phased opening underway; $121M in revenue and $14M EBITDA from operations.
- Cost Reduction:
- Operating expenses fell by 18% QoQ due to reduced activity, cost cuts, and the Treasury Brisbane closure.
- $100M in annualized savings targeted by March 2025.
Liquidity and Financing Update
- Available Cash: $78M as of 31 December 2024 (down from $149M in Q1).
- New Facility:
- $100M under Tranche 1 drawn in December 2024, netting $37.1M in cash.
- Tranche 2 ($100M) contingent on raising $150M subordinated debt, which remains challenging under current conditions.
Regulatory and Operational Updates
- Regulatory Compliance:
- Mandatory carded play and cash limits fully implemented in NSW.
- Queensland to introduce similar measures; timeline pending regulatory finalization.
- Casino Licenses:
- Sydney: Licence remains suspended, with NICC oversight until at least 31 March 2025.
- Gold Coast: Suspension deferred; decision expected by 31 March 2025.
Next Steps
The Group continues exploring liquidity solutions to address financial challenges, with no guarantee of success. Cost management and compliance with regulatory requirements remain central to operations moving forward.
