THE STAR ENTERTAINMENT GROUP LIMITED SGRASX ASX Share Price & News

With prevailing balance sheet concerns and liquidity risk, we assign Star a Poor Capital Allocation Rating. Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube. By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service.
Star Entertainment is negotiating with a property funds management giant that owns a string of major hotels for a $750 million refinancing package that would secure the ailing high roller casino tournament buy‑in group’s long-term financial future. Chow Tai Fook and Far East, co-investors in Star’s Queen’s Wharf online casino loyalty programs Singapore in Brisbane, attempted to buy Star’s share of the asset, and shareholder billionaire Bruce Mathieson has made an offer for Star’s Gold Coast casino. The majority of Star’s employees are based in Sydney, and despite recent troubles, its Pyrmont site remains a major tourism destination, with 650 hotel rooms and 36 food and beverage venues.
Star Entertainment shares have lost more than 90% of their value in the past 3 years. “If the company goes into administration, [workers] want the support of their government to ensure the doors stay open.” “At this stage, we look like we’re heading towards an administration sometime this week,” Mr Jones noted. Star said on Friday that any proposal would need to be large enough to keep Star afloat and carry a realistic chance of materialising before its board could approve the first-half results.
The company is burning through cash at the rate of $35 million a month, which gives it about six weeks of funds left before emptying its piggy bank. Revenue slumped 19 per cent over the last 12 months, with Star Sydney the company’s worst-performing asset. Morningstar still expects earnings to recover in the medium term as the Queen’s Wharf development ramps up, BlackCoin mobile app login cyclical discretionary weakness turns and regulatory costs ease. The company has taken an appropriate approach to shareholder distributions with the suspension of dividends during the pandemic. The remains their intention until suitable providing it remains within its target leverage range at the time. Star has arguably underinvested in its Sydney casino, however the $500 million sunk in improving its VIP gaming segment is unlikely to deter Crown casinos from capturing 60% of its VIP market share by fiscal 2025. Boosted by new developments in Queensland and a recovery from current headwinds, we project a 5% annual revenue growth for the five years ending fiscal 2029.
The Australian Financial Review can reveal Bally’s Corporation, which has 19 casinos across 11 American states, sent representatives to Australia to meet Star and visit its casinos last week, and has also met key Star shareholders and Imperial Poker deposit lenders. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, Cosmopolitan club nights podcasts, books, newspaper column, radio show and premium investing services. The Motley Fool launched its Australian presence in 2011, and since then has grown to reach over 1 million Australians. A trading update from executive chair Jack Cowin has raised investors’ confidence. The parent company’s guarantee of Star Entertainment’s 50% share of the DBC debt facility remains in place.
Star has been in talks with the owners of the other half of Brisbane’s Queen’s Wharf development — Hong Kong investors Far East Consortium International and Chow Tai Fook Enterprises — since mid-February. Embattled casino group Star Entertainment will stay alive, for now, after securing a $53 million lifeline in return for selling its 50 per cent stake in the new Brisbane casino. The ASX 200 and the All Ordinaries index both ended Monday’s session 1.8 per cent lower, wiping off about $50 billion in market value. Dow Jones Industrial Average, S&P 500, Mega Moolah jackpot payout schedule 2026 Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time.
The data used in our company analysis is from S&P Global Market Intelligence LLC. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The stock is down more than 58% in the past 12 months, and there’s no saying when the sell-off might end – or if it will. There are many moving parts/challenges when considering Star Entertainment’s earnings outlook with management’s ability to execute the largest risk, particularly relating to cost-out and asset sales – likely beyond non-core. It cited a “degradation” in earnings expectations for FY25 due to Star’s current set of challenges. Rather than seeing a potential bargin at these current levels, brokers are recommending investors steer clear of the company for now.