The Star Entertainment Group Ltd

SGR: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$3.86	Xzt	Hdql

Star Entertainment: Weak Trading and Elevated Compliance Spending Is Weighing on Profitability

Angus Hewitt

Apr 12, 2024

Weakness in premium gaming rooms continues to weigh on Star Entertainment’s earnings. Underlying EBITDA for the third quarter was AUD 38 million, down 12% on the previous corresponding period. While main floor gaming is up about 5% in aggregate, double-digit revenue declines in premium gaming rooms across all properties dragged revenue 5% below the PCP. Compliance costs have also risen as the firm focuses on regaining suitability to operate The Star Sydney in light of the second Bell inquiry, with monthly operating expenses about AUD 2 million higher than in the first half.

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