After a delay related to debt financing and other challenges, Star Entertainment Group Limited, the Australian gambling and entertainment company, released its results for the half year ended December 31, 2024.
The company reported a decrease in revenue in combination with a significant loss. Star Entertainment's financial update followed its agreement to receive a lifeline by Bally's Corporation under an improved AU$300m bid.
Revenue takes a dip, EBITDA and NPAT post a loss
Per the company's recent financial report, revenue for the half year ended December 31, 2024, or the H1 FY25 period, halted at AU$650m.
A year-over-year comparison to the AU$866m result from H1 FY24 points to a significant decrease of 25%.
Not unexpectedly, EBITDA also recorded a decrease and was in fact at a loss for H1 FY25.
The recently released financial update reveals that EBITDA for the six months ended December 31, 2024, was a loss of AU$26m, compared to AU$114m reported for the corresponding H1 FY24 period.
On the other hand, statutory net profit after tax (NPAT) for the half year ended December 31, 2024, was a loss of AU$302m, compared to a statutory NPAT win of AU$9m for H1 FY24.
Star Entertainment's financial update explained that the decrease in revenue reflects "challenging trading conditions due to the implementation of casino operating reforms (including mandatory carded play and cash limits at The Star Sydney) and further loss of market share."
In its update, the company highlighted that it was able to achieve a previously announced AU$100m reduction in annualized cost savings.
Moreover, Star Entertainment confirmed it is "working on embedding these costs savings and identifying further areas of potential incremental cost-out."
"The H1 FY25 result reflects a partial contribution from Treasury Brisbane, which closed on 25 August 2024, and partial contribution from The Star Brisbane, which commenced its phased opening from 29 August 2024," the company wrote.
Bally's acquires controlling stake in Star
Recently, Star Entertainment was in talks for a refinancing proposal with Salter Brothers Capital, a private equity firm.
Ultimately, the former was aiming at securing up to AU$940m, but as negotiations fell through the cracks, the company considered a bid from Bally's Corporation.
Earlier this year, Bally's tabled an AU$250m bid in exchange for a controlling stake in Star Entertainment.
After the refinancing talks with Salter Brothers Capital ended, Star Entertainment agreed to an improved AU$300m bid from Bally's in exchange for a controlling stake of 56.7%.
While Star Entertainment has already received AU$100m on April 9, 2025, another AU$200m is outstanding and is expected to be received upon approval from the company's shareholders.
