Star Entertainment Group ASX:SGR Stock Analysis

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, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time.
The company told shareholders on Friday that it would halt trading and publish its full-year results later in the day. That’s while it “considered the implications” of a damning report by New South Wales (NSW) regulators that found it was still unsuitable to hold a gaming license for its flagship Star Sydney property. Star is preparing to announce a $1.4bn write-down of its casino assets and a major Spinstralia withdrawals cost-cutting programme, the top Australian casino VIP club Financial Review reported on Monday.
The façade came crashing down in August 2022 with the state government issuing a second casino license to Crown Resorts, ramping up competitive pressure. Two experts are now calling for investors to sell two of the largest ASX consumer staples shares on the market. Star Entertainment has returned to its customary position in the loser’s column after warning shareholders about the “material uncertainty” of their investment, something they should be all too aware about already. Star Entertainment returned to its customary position in the loser’s column after warning shareholders about the “material uncertainty” of their investment, something they should be all too aware about already. Star Entertainment crashed 18 per cent as the best Aussie casino press releases operator continued to seek a financial lifeline. The advanced casino strategies operator said it may face equity contributions above this level if required as part of refinancing commitments when the current loan expires on December 31, 2025. It is unclear when the embattled PayID casino highest RTP operator, which has venues in Sydney, Brisbane and the Gold Coast, will resume trading.
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 gaming 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.
Operating margins are forecast to recover to ~12% over the same period, however this remains below pre-covid levels considering the additional tax burden from the New South Wales government. After a delayed earnings release and a turbulent regulatory environment, this entertainment behemoth remains a controversial choice for investors. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. While we recognise that sales of the assets in the business could be worth significantly more, uncertainty in the near term outlook results in a change to our rating. Thanks for all your comments on superannuation today, in light of the Grattan Institute report arguing a government-backed annuity scheme would help more people draw down on their super — sharing a few more here. Here’s how the day’s trade unfolded, with insights from our business reporters, on the ABC News markets blog. Star is also awaiting the outcome of a court decision on fines for breaches of anti-money-laundering regulations that are expected to reach to hundreds of millions of dollars.
If funding isn’t secured, Star will face the prospect of entering voluntary administration, which would see independent administrators appointed to manage affairs on behalf of creditors, and attempt to rescue operations. Shares in Star Entertainment have been suspended from trading on the stock exchange after it failed to lodge its financial results. Calix Ltd has seen its shares soar to 60cps on Monday trades after announcing it’s teaming up with none other than Rio Tinto. Most Star employees are based in Sydney, and despite recent troubles, poker bluff odds its Pyrmont site remains a major tourism destination, with 650 hotel rooms and 36 food and beverage venues. In February, Star said it had received an $650 million offer from US alternative asset manager Oaktree Capital to refinance its debt.