After a significant delay, Australian operator The Star Entertainment Group has released its financial report for FY24, showing a statutory net loss of AU$1.685bn after significant items.
The report showed a revenue of $1.678bn and EBITDA of $175m, which is in line with previously announced earnings guidance.
The report notes that, while the company had available cash of $130m at August 31, 2024, it faces “significant near-term liquidity requirements.”
The report also comes alongside news that the group’s corporate leaders have executed a commitment letter for a new debt facility of up to $200m.
The group’s existing $450m facility has been reduced to $334m, which is fully drawn.
The Company’s lenders have agreed to provide covenant waivers for the next two testing dates – September30, 2024, and December 31, 2024 - with the waiver for the latter date “being subject to execution of long-form documentation for the new debt facility and other customary conditions.”
“There are a number of significant challenges currently facing the business from an earnings, liquidity and balance sheet perspective,” said Steve McCann, The Star Group CEO. “We recognise and appreciate the support provided to date by our stakeholders as The Star puts in place a new management team and strategy to implement a remediation and transformation programme, and return the company to a more sustainable footing.
“We have identified a range of initiatives to improve business performance and cashflow, as well as providing the organisation with additional liquidity. However, time and flexibility is required to implement these initiatives.
“As we work through these initiatives, the Board and management team remain focused on demonstrating suitability to hold our casino licenses and regaining the trust and support of our regulators and the broader community while seeking to enhance shareholder value.”
