Troubled Star Entertainment suspended from trading in Australia
Star Entertainment needs to lock in a multimillion-dollar funding package before the start of April or faces the prospect of voluntary administration. The terms are expected to be finalised as early as Monday, following a weekend of negotiations. Sharemarket rallies after US futures, Asian stocks lift; Deutsche Bank first to tip 50bps May cut; Star saved as Bally’s swoops in; $A holds near five-year low. The distressed Star Entertainment will pay up to $10 million to a US hedge fund for a debt facility that was never used, or signed-off on. The businessman’s visit, his second in two months, comes as the group’s Hong Kong backers are also in the country to take ownership of its Brisbane complex. The Holiday Park crypto gaming site giant had called off negotiations on an early proposal after finding itself unable to agree on key details of a plan to sell its Brisbane precinct. Real estate (-1.8pc), financials (-1.7pc) and tech (-1.5pc) led the losses in the first 15 minutes of trade.
With prevailing balance sheet concerns and liquidity risk, Cosmopolitan travel essentials we assign Star a Poor Capital Allocation Rating. Details of the high‑roll sensitivity 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.
Membership fees for the quarter hit $US1.19 billion, up from $US1.11 billion in the second quarter of 2024, with the company reporting 78.4 million paid memberships and 140.6 million total cardholders. The retail giant’s second-quarter revenue increased to $US63.72 billion, from $US58.44 billion during the same quarter in fiscal 2024. «The tariffs are very fluid right now. So it’s hard to really give any predictions on what we can do, but we are prepared, our people are very well equipped to lower prices and defer any cost increase that come our way.» «Sometimes the margins are much tighter in those categories, but they [buyers] are prepared to work closely with the suppliers and see how efficient we can bring goods to market – is there anything we can mitigate in those categories. The Insurance Council also often puts out detailed reports on the economic impacts of natural disasters.
Sign Up for Take StockInvestment news, stock ideas, and more, straight to your inbox. The Star is continuing to engage with the Joint Venture Partners and will provide an update if there are any material developments regarding the parties’ respective interests in DBC and DGCC. However, Star and its JV partners were «unable to reach agreement on a number of outstanding commercial issues» relating to the deal. Revenues are down, with Star Entertainment reporting an unaudited $270 million in revenue for 4Q FY25, down 31% on 4Q FY24. «[It’s] loaded with $650 million of its own debt, is still less than 50 per cent operational and requires hundreds of millions of dollars in additional capital expenditure to complete,» Mr Mayne noted.
Star also secured a $200 million debt facility to cover some of its short-term financial needs, but this comes with a hefty 13.5% interest rate. Star will have to repay more than $36 million to its consortium partners between now and September, but the bigger issue is how it will shoulder its share of future equity contributions and the consortium’s debt. «As noted in the company’s recent ASX announcements, there remains material uncertainty as to the group’s ability to continue as a going concern,» it said. Star Entertainment has narrowly dodged financial collapse with thousands of jobs saved after a US casino giant swooped in to rescue the flailing business.
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.
US Crown Casino quick start guide operator Bally’s has reportedly shown interest, as has billionaire Clive Palmer. With the company’s future under a cloud, its board is holding out hope of a last-minute rescue, saying on Friday that it expected to receive «possible liquidity solutions» during the day, which would be carefully assessed. Star Entertainment has given its suitor Salter Brothers until the beginning of April to complete due diligence and deliver a $750 million rescue package, as the WinSpirit best online casino group teeters on the brink of collapse for the second time in a month. The ASX-listed company was hit with a 41 per cent protest vote against its remuneration report as it revealed an unaudited earnings before interest and tax loss of $27 million for the first four months of trading in the new financial year. The fair go casino marketing operator burnt through $107 million of its available cash in the December quarter, which should be its busiest trading period of the year. Meanwhile, Star’s largest shareholder and legendary hotelier Bruce Mathieson had also previously pitched two offers for the company’s Gold Coast casino.
