Shares of The Star Entertainment Group Limited (AU:SGR) plunged today as trading resumed following their return to the ASX (Australian Stock Exchange) after reporting a massive annual loss for FY24. The company’s shares were suspended from the ASX earlier this month after missing the deadline for releasing its annual financial results. The suspension was followed by a week’s trading halt, requested by the company amid accusations of money laundering and fraud in a state casino regulator inquiry.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The Star Entertainment Group is a gambling and hospitality company operating major properties like The Star Sydney, The Star Gold Coast, and Treasury Brisbane.
Star Entertainment Releases Unaudited FY24 Results
Star Entertainment’s FY24 revenue reached AU$1.7 billion, with an EBITDA (earnings before interest, tax, depreciation, and amortization) of AU$175 million, consistent with the previously provided earnings guidance. Meanwhile, the statutory net loss after tax for the year was AU$1.69 billion, down from AU$2.44 billion in the previous year.
The company also reduced the value of its casinos in Sydney, Brisbane, and the Gold Coast by AU$1.4 billion. These impairment charges were due to the challenging trading conditions and recent and upcoming regulatory changes that are expected to hurt the company’s earnings.
Additionally, the company noted that its deteriorating trading performance in the second half of FY24 continued into the start of FY25. This was primarily attributed to rising operating expenses related to ongoing transformation and restructuring activities. Star Entertainment reported operating expenses of AU$1.1 billion in FY24.
What Is the Stock Price Prediction for Star Entertainment?
As per the consensus among analysts on TipRanks, SGR stock has been assigned a Hold rating. This is based on four Hold recommendations. The Star Entertainment share price target is AU$0.49, which is 94.12% above the current level.
Year-to-date, SGR stock has lost 54% in trading.
