Star Entertainment Group says it lost $471.5 million last financial year and its soft trading conditions continued in July.
The embattled casino group also disclosed Friday it had $189 million in available cash as of Monday, $45 million less than it had as of June 30, although that’s partly because it paid $16 million in back taxes during that time.
Star said it brought in $92.1 million in revenue and incurred a $7.4 million operating loss in July, slightly ahead of its June quarter average.
“There remains material uncertainly regarding the group’s ability to continue as a going concern,” the company said, citing six items that are critical to its financial outlook.
Among them is a looming money-laundering penalty from AUSTRAC, Australia’s financial watchdog, which has proposed a fine of $400 million; Star’s ability to restore its casino licenses; and completing a $300 million investment from Bally’s and pub baron Bruce Mathieson.
Star also owes $434.3 million to its senior lenders and needs them to continue to waive financial covenants if it is to survive, with September 30 the next deadline for a waiver.
“Our announcement today highlights a number of key interdependencies that are critical to the group’s future,” CEO and managing director Steve McCann.
“The group continues to require significant support from a range of its stakeholders including governments, regulators, lenders and investors.
“Without that support it will be difficult to navigate the various challenges facing the group and to create a sustainable future for the business.”
Star is due to receive another $67 million in funds from Bally’s and Mr Mathieson by October 9, the last tranche of their $300 million investment.
Star also earlier this month executed a binding agreement to sell its half-stake in the debt-ridden Queen’s Wharf Brisbane entertainment hub to its Hong Kong partners, with a plan to consolidate its position on the Gold Coast.
Star’s $472 million loss for last financial year, while massive, is far less than the $1.7 billion loss it posted for 2023/24.
Group revenue was down 29 per cent to $1.2 billion for the 12 months to June 30, which Star said reflected challenging trading conditions.
In part that’s because mandatory carded play and cash limits at The Star Sydney, requirements imposed by regulators, have led to a loss of business.
Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.
