The group was required to post its financial results on Friday to avoid a trading suspension, but said in a statement this morning that it would be unlikely to release its results until it had secured a financial lifeline.
“The company is unlikely to be in a position to lodge its 1HFY25 Report unless, and until, it has secured a refinancing commitment that would enable The Star to refinance all of the group’s existing corporate debt, as well as to provide additional liquidity,” said this morning’s statement.
The statement also reiterated a phrase that has been appearing in its market announcements since the start of the year: “there remains material uncertainty as to the group’s ability to continue as a going concern”.
Aside from its casinos in prime positions in Sydney, the Gold Coast and Brisbane, The Star controls thousands of square metre of event space, with event centres at all three locations, alongside hundreds of hotel rooms.
The group also employs more than 8,000 people – at June 30 last year its employees numbered 8,172, and this was prior to the staged opening of its Queen’s Wharf development last August. Around 1,000 additional staff were set to be recruited to service The Star’s offering at Queen’s Wharf – although some of these staff may have already been in their roles at June 30.
The Star has been having a tough few years, which have included being found unsuitable to hold a casino licence in both states in which it operates, resulting in $215 million in penalties so far, and timeline blowouts for the multi-billion-dollar Queen’s Wharf precinct, in which it owns a 50 per cent stake. Difficult trading conditions, echoed by its competitor SkyCity Entertainment Group, also haven’t helped matters.
In January, The Star announced the sale of its Sydney Event Centre to Foundation Theatres for $60 million, in a deal that was expected to close out by the end of February.
Last month The Star also said it was open to selling its stake in Queen’s Wharf to its co-investors, Chow Tai Fook Enterprises and Far East Consortium, but had not reached a suitable arrangement.
Since this morning’s statement, The Star has not provided another update.
