Key Highlights
- Cash Position as of December 31, 2024:
- Available cash stood at $79 million, reflecting a $70 million reduction from the September 30, 2024 balance of $149 million.
- This figure includes the impact of the $100 million drawdown under Tranche 1 of the Group’s new debt facility.
- Net Cash Reduction: Adjusting for the Tranche 1 drawdown, the Group’s net cash outflow over Q4 2024 was approximately $107 million.
Contributing Factors to Cash Reduction
The decline in cash reflects:
- Challenging Trading Conditions: Previously flagged during the November 2024 AGM.
- Essential Capital Expenditure: Investments deemed critical for operations.
- Significant Outflows:
- Upfront fees associated with the new debt facility.
- $5 million instalment of a $15 million fine imposed by the NSW Independent Casino Commission.
- Legal and consulting fees related to transformation and remediation activities.
- Contributions to joint ventures.
Liquidity Measures
- New Debt Facility (Tranche 2):
- The Group is working to fulfill conditions precedent to access an additional $100 million under Tranche 2 of the facility.
- These conditions remain challenging given current circumstances.
- Exploring Other Solutions: The Star is actively exploring alternative liquidity options to ensure operational stability.
Looking Ahead
The Star plans to release:
- Quarterly Update: By the end of January 2025.
- Half-Year Results: Scheduled for February 28, 2025, covering the period ended December 31, 2024.
Commentary
The Star’s financial challenges underscore the impact of ongoing regulatory penalties, difficult market conditions, and transformation efforts. Accessing additional liquidity through Tranche 2 or alternative solutions will be critical for the Group’s near-term financial stability.
