The Star Entertainment Group (ASX:SGR) Releases Q3 FY25 Report
Financial Performance
The Star Entertainment Group reported revenue of $271 million for Q3 FY25, a 9% decrease compared to Q2. EBITDA loss widened to $21 million, up from $8 million in the previous quarter. The decline was attributed to seasonal softening, reduced gaming visitation, and adverse weather events affecting Queensland properties.
Strategic Investments
During the quarter, The Star made equity contributions of $26 million to the Destination Brisbane Consortium Integrated Resort joint venture. On 7 April 2025, the company entered a binding term sheet with Bally’s Corporation for a $300 million strategic investment. Its largest shareholder, Investment Holdings Pty Ltd, committed $100 million of this amount. Additionally, The Star completed the sale of the Sydney Event Centre for $60 million, with $58 million held in escrow pending shareholder approval of the strategic investment.
Liquidity Update
The Group had available cash of $44 million as of 31 March 2025. Key initiatives to enhance liquidity include completing the strategic investment from Bally’s and Investment Holdings, accessing the sale proceeds from the Sydney Event Centre, and exiting its investment in DBC.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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