The Star Entertainment Group posted revenue of A$266m for the three months to 31 March, down from A$301m in the previous quarter and slightly below last year’s A$268m. Despite this, losses improved, with EBITDA at negative A$1m compared to a A$24m loss a year earlier.
Due to mandatory cash limits beginning in October 2023 and a requirement for carded play, revenue levels have declined across all 3 sites of Star Australia. In addition, Sydney is underperforming as the site’s revenue was down A$147m from the previous quarter and year. During this period, the site had an operating loss in terms of EBITDA of A$4m, although this is an improvement over prior quarters.
On Gold Coast, Star generated A$101m in revenue and experienced a similar seasonal decline from the previous quarter as economics have improved compared to the same period last year when weather conditions were poor due to cyclone. The EBITDA of A$8m at that time was positively influenced by electronic gaming and hospitality.
Brisbane’s revenue & EBITDA of A$15m & A$4m respectively, have both been impacted by the group’s partial exit from the joint venture, however, the new structure will include: an annual fixed expense of A$18m + performance based income.
Total Opex fell from A$230m to A$206m due to cost savings achieved through corporate cost reductions and renegotiated supplier contracts; more savings efforts are being implemented.
Cash reserves decreased from A$130m to A$90m during this quarter and the group is currently undertaking a A$550m refinancing arrangement with WhiteHawk Capital Partners, which is expected to be completed before May.