Summary
- Star Entertainment has published its postponed half-year report, revealing financial information for the period ending December 31, 2024.
- The company reported a decline in revenue, EBITDA, and statutory net profit after tax.
- Earlier this month, Star Entertainment agreed to a AU$300 million offer from Bally's Corporation for a controlling stake.
After encountering delays due to debt financing and other challenges, Star Entertainment Group Limited, the Australian gambling and entertainment company, has published its results for the half-year ending December 31, 2024. The company reported a decline in revenue along with a substantial loss. This financial update comes after Star Entertainment agreed to a lifeline in the form of an improved AU$300 million offer from Bally's Corporation.
Revenue takes a dip, EBITDA and NPAT post a loss
The company's financial report for the half-year ending December 31, 2024, or H1 FY25, shows a revenue of AU$650 million. This represents a 25% decrease compared to the AU$866 million recorded in H1 FY24. As expected, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also declined, resulting in a loss for H1 FY25. The financial update indicates an EBITDA loss of AU$26 million for the six months ending December 31, 2024, compared to an EBITDA of AU$114 million in H1 FY24. Statutory net profit after tax (NPAT) for the same period was a loss of AU$302 million, contrasting with a NPAT gain of AU$9 million in H1 FY24. Star Entertainment attributes the revenue decline to
Bally's acquires controlling stake in Star
Star Entertainment recently entered into discussions with Salter Brothers Capital, a private equity firm, regarding a refinancing proposal. The goal was to secure up to AU$940 million, but negotiations failed. Consequently, Star Entertainment turned to Bally's Corporation, which had previously made a bid. Earlier this year, Bally's offered AU$250 million for a controlling stake in Star Entertainment. After the talks with Salter Brothers Capital fell through, Star Entertainment accepted a revised offer from Bally's, agreeing to a deal worth AU$300 million for a 56.7% controlling stake. Star Entertainment has already received AU$100 million as of April 9, 2025, while the remaining AU$200 million is pending and will be provided upon shareholder approval.
