Australia’s Star Entertainment Group disclosed significant statutory losses for the fiscal year ending June 30, 2024. Reported losses amounted to A$1.69 billion (US$1.16 billion). This significant financial downturn was attributed to a non-cash impairment cost of A$1.44 billion (US$987 million), reflecting adverse trading conditions and the impact of the recently introduced strict regulatory measures.

Financial downturn despite operational efforts:

Excluding these damages and other substantial costs, Star Entertainment would have posted a pre-tax net income of A$12 million ($8.2 million), a significant drop from A$41 million ($28.1 million) recorded in the prior year. The financial results announcement was delayed by a month following an investigation by regulators that found Star Sydney unfit to hold a casino license. The findings and costs related to the launch of Queen’s Wharf Brisbane almost led to a financial collapse before it secured a new A$200 million debt facility from the lender earlier this week.

Despite the challenges, Star Entertainment’s overall revenue fell 10% year-over-year to A$1.68 billion ($1.15 billion), resulting in EBITDA falling 5% to A$175 million ($120 million). The company acknowledged that its trading performance deteriorated in the second half of its fiscal year, a trend that has persisted into the early months of FY25.

Continued financial difficulties and recovery efforts:

“Over July and August 2024, The Star lost A$6.6 million ($4.5 million) and A$1.1 million ($754,000) in EBITDA losses, respectively,” the company reported. “Monthly operating costs are on the rise through the second half of FY24, driven by continued change and increased improvement-related activities, offsetting previously announced cost-cutting programs.”

The Star Sydney’s revenue fell 11% to A$878 million (W620 million), with gaming revenue down 12%. Non-gaming revenue was relatively resilient but was still down 2%. Star Gold Coast and Treasury Brisbane also posted sales declines of 10% and 8%, respectively, with gaming revenue dropping notably.

The financial difficulties have been exacerbated by significant items totaling A$1.7 billion ($1.17 billion), dominated by A$1.44 billion in asset impairment. These costs have been compounded by regulatory fines, fines, consultant fees, legal costs and A$100 million ($68.6 million) related to other expenditures, including A$16.7 million ($11.5 million) related to the Bell 2 investigation.

In response, Star Entertainment CEO Steve McCann outlined several strategic initiatives aimed at stabilizing the company. These include enhancing customer experience, selling off non-core assets, reducing maintenance capital expenditures, and executing annual cost savings. “There are significant challenges facing the business from a revenue, liquidity, and balance sheet perspective right now,” McCann said. “We thank stakeholders for their continued support as we implement improvement and innovation programs to bring the company back to a more sustainable foundation.” 프라그마틱 슬롯 사이트