Star Entertainment Group Limited · ASX:SGR
Star Entertainment — H1 FY25 Earnings Presentation
31 slides from Star Entertainment's earnings presentation, Apr 15, 2025
Slide 1: ASX Announcement: 1HFY25 Results Presentation
ASX Announcement 15 April 2025 1HFY25 RESULTS PRESENTATION Attached is the presentation regarding the financial results of The Star Entertainment Group Limited (ASX:SGR) for the half-year ended 31 December 2024 (1HFY25). A briefing for investors and analysts will be held at 1:00pm (AEST) today, Tues
Slide 2: H1 FY25 Results Presentation
H1 FY25 RESULTS PRESENTATION 15 April 2025 The Star Entertainment Group Limited ABN: 85 149 629 023
Slide 3: Disclaimer
DISCLAIMER This presentation (Presentation) contains summary information about The Star Entertainment Group and its subsidiaries (TSEG or the Group) and their current activities. It should be read in conjunction with the Group’s other periodic and continuous disclosure announcements lodged with the
Slide 4: Basis of Preparation
BASIS OF PREPARATION • Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with The Star Entertainment Group Limited’s (TSEG, The Star or The Group) interim financial statements for the six months ended 31 Decem
Slide 5: Agenda
AGENDA 1. Business Update 2. H1 FY25 Financial Results 3. Recent announcements and trading update 4. Regulatory Update 5. Appendices 4
Slide 6: Business update
Business update 5
Slide 7: Business Update – Financial performance
BUSINESS Update – Financial performance • H1 FY25 normalised revenue was $650 million1, down 25% from H1 FY24. The reduction in revenue was due to: - Continued challenging trading conditions, which in part reflects casino operating reforms and loss of market share - The Star Sydney domestic gaming r
Slide 8: Business Update – Asset Sales
BUSINESS Update – ASSET Sales • On 7 March 2025, The Star announced an agreement to exit its equity interest in Destination Brisbane Consortium (DBC) and consolidate its position on the Gold Coast, including a transfer of interests of certain Brisbane and Gold Coast assets • Key features of this tra
Slide 9: Business Update – Strategic investment and Liquidity
BUSINESS Update – Strategic investment and Liquidity • On 7 April 2025, The Star announced it has entered into a binding term sheet with Bally’s Corporation (Bally’s) for a strategic investment in the form of a multi-tranche convertible note and subordinated debt instrument for a principal value of
Slide 10: Business Update – Initiatives / Other
BUSINESS Update – Initiatives / OTHER CORPORATE • The Star has achieved the previously announced $100 million reduction in annualised cost savings1 Cost out • Further work is being undertaken to embed these cost savings and identify additional areas of cost-out opportunity • The Star Sydney’s licenc
Slide 11: H1 FY25 Financial Results
H1 FY25 FINANCIAL RESULTS 10
Slide 12: H1 FY25 Financial Overview
H1 FY25 FINANCIAL OVERVIEW EBITDA (before significant items) NPAT (statutory) Normalised revenue H1 FY25 -$26.4m -$301.9m $649.6m1 H1 FY24 $113.6M H1 FY24 $9.1M H1 FY24 $865.7M EBITDA Margin (normalised) Significant items (after tax)2 14.4 -4.1% -$166.2m 54.8 H1 FY24 13.1% H1 FY24 -$15.9M 8% vs FY2
Slide 13: Group Profit and Loss
GROUP PROFIT AND LOSS Normalised results H1 FY25 $’million H1 FY24 $’million Variance % Commentary • Group revenue declined 25% due primarily to a 32% decline in domestic gaming revenue Domestic Gaming revenue 464.0 683.3 (32.1%) which was impacted by continued challenging trading conditions (casino
Slide 14: The Star Sydney Results Overview
THE STAR SYDNEY RESULTS OVERVIEW Normalised results H1 FY25 $’million H1 FY24 $’million Variance % COMMENTARY EGMs 113.3 153.3 (26.1%) Revenue Tables 174.3 220.1 (20.8%) • Domestic gaming revenue down 23% reflecting continued impact from implementation of uplifted controls, casino operation reforms
Slide 15: The Star Gold Coast Results Overview
THE STAR GOLD COAST RESULTS OVERVIEW Normalised results H1 FY25 $’million H1 FY24 $’million Variance % COMMENTARY EGMs 92.9 105.2 (11.7%) Revenue Tables 37.7 44.8 (15.8%) • Domestic gaming revenue down 13% from the continued impact of the implementation of uplifted controls and casino industry refor
Slide 16: Treasury Brisbane Results Overview
TREASURY BRISBANE RESULTS OVERVIEW Normalised results H1 FY25 $’million H1 FY24 $’million Variance % COMMENTARY EGMs 25.2 91.9 (72.6%) • Treasury Casino closed on 25 August 2024 ahead of the opening of The Star Brisbane on Tables 20.6 68.0 (69.7%) 29 August 2024. The casino licence was surrendered t
Slide 17: The Star Brisbane
The Star Brisbane COMMENTARY H1 FY25 H1 FY24 Variance Normalised results $’million $’million % Revenue • Revenue of $14.4 million comprises the operator fee paid by DBC to The Star Operator fee revenue 14.4 - n.a • The Star Brisbane operator fee through to February 2025 was structured as: Operating
Slide 18: H1 FY25 – Group Balance Sheet
H1 FY25 – GROUP BALANCE SHEET December 2024 June 2024 $’million $’million Cash and cash equivalents 138.2 299.6 COMMENTARY Trade and other receivables 29.2 31.5 • Cash and cash equivalents of $138 million, representing $78 million of Inventories 12.3 13.6 available cash, $2 million of current restri
Slide 19: H1 FY25 - Cash Flow Bridge
H1 FY25 - Cash Flow Bridge Cash and Cash equivalents Position Available cash as at 11 April 2025 is $98 million2, which includes the $45 million of cash Asset Value ($m) received in March 2025 under the announced agreement to exit DBC and consolidate Gold Available cash 199 Coast assets and the Tran
Slide 20: Recent Announcements and Trading update
Recent Announcements and Trading update 19 19
Slide 21: Exit of DBC and consolidation of Gold Coast assets
Exit of DBC and consolidation of Gold Coast assets1 Transaction Highlights Released from Parent • A condition of the transaction is that The Star is released from the parent company guarantee in relation to its 50% share of the DBC debt facility Company Guarantee on the DBC debt • The drawn debt und
Slide 22: $300 million Strategic Investment into The Star
$300 million Strategic Investment INTO The STar • On 7 April 2025, The Star announced it has entered into a binding term sheet with Bally’s Corporation with respect to a multi-tranche convertible note and subordinated debt instrument for a principal value of $300 million Overview • On 8 April 2025,
Slide 23: Trading Update
TRADING update Quarterly financials (A$m) % change TRADING UPDATE Q2 FY25 Q3 FY24 vs. Q2 FY25 vs. Q3 FY24 • Soft trading conditions have continued throughout Q3 FY25, with Group revenue of Q3 FY25 (last quarter) (pcp) (last quarter) (pcp) $271 million compared to $299 million in Q2 FY25 The Star Syd
Slide 24: Regulatory Update
Regulatory UPDATE 23 23
Slide 25: Casino Licences and Remediation Plan Update
Casino Licences and Remediation Plan UPDATE • The Star Sydney – The Star Sydney’s licence remains suspended, with the term of the Manager’s appointment extended to 30 September 2025 • The Star Gold Coast – The Star Gold Coast’s licence has been suspended, with suspension deferred and the term of the
Slide 26: Regulatory & Major Claims Update
REGULATORY & major claims UPDATE Introduction of mandatory • The Star Sydney - Mandatory carded play was introduced across entire gaming floor on 19 October 2024. Cash limits are due to reduce to $1,000 by 19 August 2025 carded play and • The Star Gold Coast & The Star Brisbane – Mandatory carded pl
Slide 27: Appendices
APPENDICES 26 26
Slide 28: Corporate Allocation
Corporate Allocation Property normalised results ($m) The Star Sydney H1 FY25 H1 FY24 Net Revenue 362.2 450.0 Gaming taxes and levies (99.1) (125.3) Operating expenses (excl Corporate) (206.1) (199.8) • The group operates a centralised corporate Property EBITDA 57.0 124.9 function and allocates corp
Slide 29: Normalised Results by Property
NORMALISED RESULTS BY PROPERTY The Star Sydney The Star Gold Coast Treasury Brisbane The Star Brisbane Group H1 FY25 H1 FY24 fav/(unfav) H1 FY25 H1 FY24 fav/(unfav) H1 FY25 H1 FY24 fav/(unfav) H1 FY25 H1 FY24 fav/(unfav) H1 FY25 H1 FY24 fav/(unfav) EGMs 113.3 153.3 (26.1%) 92.9 105.2 (11.7%) 25.2 91
Slide 30: Glossary of Terms
GLOSSARY OF TERMS Term Definition AML/CTF Anti-Money Laundering and Counter-Terrorism Financing AUSTRAC Australian Transaction Reports and Analysis Centre CAGR Compound Annual Growth Rate Capital expenditure (capex) Unless otherwise stated, capital expenditure is presented on an accruals basis and e
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Star Entertainment Group — H1 FY25 Earnings Presentation on 6ix