The Star Entertainment Group (ASX: $SGR) FY24 Trading Update and Earnings Guidance

The Star Entertainment Group Limited (ASX: $SGR) provided a trading performance update and earnings guidance for the financial year ending 30 June 2024. The Group expects Group revenue for FY24 to be between $1,675 million and $1,685 million, with normalised Group EBITDA in the range of $165 million to $180 million. Current trading conditions reflect a challenging economic environment and cost of living pressures, resulting in Q4 FY24 revenue expected to be 4.3% below Q3 FY24 and 3.3% below Q4 FY23.

The Star Entertainment Group's Executive Commentary on FY24 Trading Update

Trading conditions have remained challenging, impacting the Group's revenue expectations for FY24. The decline in revenue from Premium Gaming Rooms (PGRs) has been significant, offsetting the sound performance of the Main Gaming Floor (MGF). The Group is actively seeking to reduce its operating cost base in response to the elevated expenses. Negotiations for the sale of assets including the Treasury casino, hotel, and car park are progressing, and the Group is reviewing the potential sale of other non-core assets. The Interim Group CFO and Acting CEO, Neale O'Connell, will host an investor call today to discuss this trading update.

The Star Entertainment Group's FY24 Outlook

The Star Entertainment Group anticipates challenging trading conditions for FY24, with Group revenue expected to be between $1,675 million and $1,685 million. The decline in revenue from Premium Gaming Rooms has impacted the overall performance, despite a sound performance from the Main Gaming Floor. The Group aims to expedite initiatives to reduce its operating cost base and is progressing negotiations for the sale of assets. The Star recommends investors make their own assessments and seek independent professional advice before making investment decisions.