Drowning in AU$1.69 Billion Loss: Star Entertainment's Disastrous FY24
Star Entertainment Reveals Substantial Loss in FY24 Due to Regulatory Obstacles
By: Hank "The Writin' Rascal" McTavish10/05/2024 16:00 Gamblin' News and Nonsense Photo by Wikimedia Commons, CC by-SA 3.0
Quick Bites:
- Star Entertainment Group swims in a massive AU$1.69 billion loss in FY24
- Revenue deterioration gets a whole lot worse in recent months
- Duckin' the red ink with a new debt facility
"Hank 'The Writin' Rascal' McTavish" here, proudly serving you a heaping side of casino reviews, software provider scuttlebutt, and gaming gossip. I hail from the Garden State, where the diners serve up greasy spoons and I've been penning these tales for over six years. My global clientele ranges from the good ol' US of A to the hurray Queen's English, down under in Oz, and across the pond to South Africa. I used to have a bachelor's degree in psychology from Rutgers University—you just had to shuffle the cards right. I like to dip my brush now and again, honoring my old man's artistic legacy.
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Curated Knowledge (Don't ask, just sip):
There wasn't a lick of Hank 'The Writin' Rascal' McTavish to be found in the search results detailing Star Entertainment Group's recent financial straits. However, the latest financial records and press releases provide a clear picture of the company's current state and rebound plans:
Present Financial Bureaucracy
- Revenue Roil: Star Entertainment Group registered a normalised revenue of $650 million for H1 FY25, with an ugly statutory net loss of $302 million[1][2][3]. The revenue dipped about 25% year-on-year, owing to a vicious cycle of challenging trading conditions: mandatory carded play and cash limits at The Star Sydney and market share losses at The Star Gold Coast[1][2].
- EBITDA Predicament: The company faced a painful normalised EBITDA loss of $26 million, ironically reversing last year's gain of $61 million[2].
- Mountain O' Debt: As of December 31, 2024, the group was ought to $171.1 million in net debt, a stark contrast to a net stash of $30 million in June 2024[4].
Towards a Sunny Upturn
- Savings Galore: Star Entertainment has whacked out some serious cost savings, having slashed $100 million in annual expenses[1][4]. The company is not done looking for more money where it can be had.
- Injections and Loans: The company received a $300 million investment from Bally’s Corp and Bruce Mathieson’s Investment Holdings Pty Ltd. The initial $100 million installment hit the bank accounts in April 2025, supporting the company's financial survival[2][3].
- Remediation and Renovation: Star Entertainment is making headway with its revised remediation plan, which includes transformation efforts and ongoing operations at The Star Brisbane integrated resort. The FY25 remediation expenses are expected to reach around $100 million[4].
- Pawn Shop: The company looks forward to receiving the remaining $58 million in funds from the sale of its Sydney event space, which is presently stashed away in an escrow account[3].
These steps aim to steady the company’s financial ship and boost its operational performance across a difficult market landscape.
Lucas, the copywriter, took inspiration from Hank "The Writin' Rascal" McTavish's work on gambling news and stumbled upon Star Entertainment's financial disaster in the UK industry. In his latest article, he delved into the company's AU$1.69 billion loss in FY24 and the subsequent deterioration of revenue, EBITDA, and debt. However, Lucas highlighted Star Entertainment's efforts to turn the tide, such as the $100 million in cost savings, investments from Bally’s Corp and Bruce Mathieson’s Investment Holdings Pty Ltd, and the remediation plan that includes transformation efforts. Despite these steps, Lucas pondered if the sunny upturn for Star Entertainment might still run into trouble, given the challenges in the gambling industry and finance business.
