Full Year 2024 Star Entertainment Group Ltd Earnings Call Transcript
Key Points
- The Star Entertainment Group Ltd (EHGRF) has secured a new debt facility agreement, providing short-term liquidity and enabling the company to resume trading.
- The Star Brisbane has opened and received positive feedback, with initial revenues substantially higher than Treasury Brisbane.
- The company has identified over $100 million in annualized cost savings, with plans to implement these by March 2025.
- Non-gaming revenue has shown an upward trend, indicating potential for diversification and growth in this segment.
- The company is actively pursuing asset sales, including non-core assets, to improve liquidity, with an estimated $300 million in additional assets identified for sale.
- Statutory EBITDA for FY24 was $175 million, down 45% from the previous year, indicating significant financial challenges.
- The company reported a statutory loss of $1.69 billion, including $1.44 billion in impairments and other significant items.
- The performance of the business has continued to deteriorate, with EBITDA for the second half of FY24 down 46% from the first half.
- Operating expenses have increased, driven by remediation and transformation activities, and are expected to remain elevated.
- The introduction of mandatory carded play and reduced cash limits has negatively impacted revenue, with a 10.7% decline in the first four weeks of implementation.
Thank you for standing by and welcome to The Star Entertainment Group Limited FY24 results and update. (Operator Instructions) I would now like to hand the conference over to Mr. Steve McCann, Group CEO, subject to regulatory approvals. Please go ahead.
Thanks very much and thank you for saying the subject to regulatory approval piece because I do need to state that I'm the incoming CEO and Managing Director, don't yet have proprietary approval. So that will need to be forthcoming before I'm in a position to make decisions that bind the company. So I'm here in an observer capacity but I will be leading the discussion. I'm here with Neale O'Connell, the CFO and acting CEO.
So thank you for joining us. What I was planning to do was quickly flip through the shareholder deck that's been put on the ASX. I won't dwell on a lot of the detail but I'll move through it relatively quickly and then take questions.
Just to begin, and context, which you
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