Latest news with #BruceMathieson
Sky News AU
30-04-2025
- Business
- Sky News AU
Star Entertainment Group reports $21m loss as ex-Tropical Cyclone Alfred, gambling restrictions hurt embattled casino
Star Entertainment Group has reported a $21m loss for the first three months of this year as dwindling visitor numbers, gaming restrictions and the ex-Tropical Cyclone Alfred plagued the embattled casino operator. The company on Wednesday informed shareholders that its future still remains in doubt just weeks after announcing it has agreed to a takeover bid from US gaming giant Bally's Corporation and Australian publican Bruce Mathieson. Star revealed revenue for the third quarter of the 2025 financial year was down nine per cent from the December quarter to $271m – a 35 per cent year-on-year fall. Its earnings before interest, taxation, depreciation and amortisation – which measures the business' core profitability – was down to a $21m loss from an $8m drop in the previous quarter. Star said the impacts of ex-Tropical Cyclone Alfred hurt revenue for its Gold Coast venue with the company reporting a 13 per cent revenue slump compared to the December quarter. It also suffered an EBITDA loss of $1m at the Brisbane venue, in part due to closing down from the cyclone. The casino group has also blamed the introduction of carded play and cash limits for the decline in revenue. Its daily revenue has fallen 17 per cent at its Sydney venue, compared to its four-week daily average before August 19, after the restrictions were implemented in October. Revenue at the Sydney venue has dived eight per cent compared to the previous quarter and may fall further as the $5000 cash limit will be reduced to $1000 in August. The gambling restrictions have been legislated for the Star Gold Coast but the Queensland government will determine when they are implemented. Shareholders were informed the company is desperately looking to secure a near-term cash injection and complete multiple deals to keep the business afloat. 'There remains material uncertainty regarding the Group's ability to continue as a going concern,' the company said. It needs to complete the takeover deal from Bally's and Mr Mathieson, secure the $58m being held in escrow from the sale of the Sydney events space and completely exit from the Brisbane Queen's Wharf complex it sold to Hong Kong investors. Star's liquidity position also remains in doubt as it reported having $44m in cash as of March 31. However, this was prior to Star receiving a $100m cash injection as part of the takeover offer with the casino group revealing earlier this month it had $98m. The update comes several weeks after Star revealed it lost $302m over the first half of the 2025 financial year. The casino operator was pulled out of its trading halt it was in after failing to publish its results by the February 28 deadline. Star had about $450m in debt at the end of 2024 and while the company's directors admitted there is uncertainty about Star's future, it noted the company could meet its liabilities if certain deals fall in place. The takeover deal saw $100m already injected into Star while the remaining $200 million - which is convertible to shares - will be paid after a shareholder vote and after the deal receives regulatory approval from the Foreign Investment Review Board.
Yahoo
15-04-2025
- Business
- Yahoo
Star reveals massive financial loss
Australian casino operator Star Entertainment has reported a $302m loss in the first half of the financial year, which is a bigger than expected downfall. The company told the ASX the net loss was from July 1 to December 31 of last year. They recorded a $9m loss in the same period of the previous financial year. This comes as revenue fell by 25 per cent to $650 million in the back of domestic gaming revenue dropping by 32 per cent. The company said it has $98m in cash available as of April 11 after previous reports revealed the business could run out of money. Despite the deteriorating performance over the first half of the financial year, the group said the second quarter stabilised compared with the first, although it still fell 9 per cent. 'The Star Sydney and challenging trading conditions caused by casino operating reforms and market share loss at The Star Gold Coast,' the company said. 'The Star has achieved the previously announced $100 million reduction in annualised cost savings. 'The Star is working on embedding these costs savings and identifying further areas of potential incremental cost-out.' Star Entertainment shares have remained suspended at 11 cents since March 3 with the inability to release the results on the ASX while negoatiiong a survival deal with potential suitors. In the end US casino operator Bally's Corp announced it was taking over Star Entertainment Group. Last week, Star Entertainment announced it was accepting a $300m from the US operation, after a similar offer from the Salter Brothers fell through. As part of the deal, Bally's will take a 57 per cent equity stake in Star Entertainment that has saved the Australian casino from almost certain financial collapse. Under the proposal, Bally's will inject about $250m into The Star, while its largest shareholder Bruce Mathieson will provide more than $50m. Under the proposal, Bally's will inject about $250m into The Star, while its largest shareholder Bruce Mathieson will provide more than $50m. Star Entertainment has agreed to a $60m divestment of its Sydney event centre, as the casino looks to quickly raise cash to stave off collapse. In the casino operator's latest move, it has completed its divestment of the The Star Event Centre and other additional spaces within The Star Sydney complex to Foundation Theatres.
Yahoo
09-04-2025
- Business
- Yahoo
Endeavour Group Limited (ASX:EDV) most popular amongst retail investors who own 47% of the shares, institutions hold 34%
The considerable ownership by retail investors in Endeavour Group indicates that they collectively have a greater say in management and business strategy 50% of the business is held by the top 19 shareholders 15% of Endeavour Group is held by insiders This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Every investor in Endeavour Group Limited (ASX:EDV) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 47% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk). Meanwhile, institutions make up 34% of the company's shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Let's delve deeper into each type of owner of Endeavour Group, beginning with the chart below. View our latest analysis for Endeavour Group Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Endeavour Group. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Endeavour Group's earnings history below. Of course, the future is what really matters. Hedge funds don't have many shares in Endeavour Group. Looking at our data, we can see that the largest shareholder is Bruce Mathieson with 15% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 6.1%, of the shares outstanding, respectively. A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that insiders maintain a significant holding in Endeavour Group Limited. Insiders own AU$1.0b worth of shares in the AU$7.0b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling. With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Endeavour Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. We can see that public companies hold 4.1% of the Endeavour Group shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together. It's always worth thinking about the different groups who own shares in a company. But to understand Endeavour Group better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Endeavour Group you should be aware of. Ultimately the future is most important. You can access this free report on analyst forecasts for the company . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Embattled casino's latest lifeline
Star Entertainment has agreed to a $60m divestment of its Sydney event centre, as the casino looks to quickly raise cash to stave off collapse. In the casino operator's latest move, it has completed its divestment of the The Star Event Centre and other additional spaces within The Star Sydney complex to Foundation Theatres. 'The $60m exclusivity fee paid by Foundation Theatres into escrow has now been released to The Star as consideration for the disposal,' Star said in a statement. The completion of the deal comes just days after Star Entertainment announced it was accepting a $300m buyout from US-based casino operator Bally's Corp. As part of the deal, Bally's will take a 57 per cent equity stake in Star Entertainment that has saved the Australian casino from almost certain financial collapse. Under the proposal, Bally's will inject about $250m into The Star, while its largest shareholder Bruce Mathieson will provide more than $50m. According to a statement on the ASX, Star Entertainment is expecting to receive the money before the end of the week, allowing it to meet its near-term financial obligations. The deal with Bally's could help Star Entertainment end a tumultuous period for the casino after a $750m deal with asset manager Salter Brother fell through. 'The Star has continued to work diligently with Salter Brothers Capital in relation to the refinancing proposal but has not received a binding debt commitment letter and the refinancing proposal has now been withdrawn,' an ASX announcement stated. Star Entertainment has been in a trading halt on the ASX since February 24 after it was unable to lodge half-yearly results. The company also faces pressure from the corporate watchdog's investigation into its operations. In October 2022, the NSW Independent Casino Commission imposed a $100m fine on Star after finding the company had allowed money laundering to take place at its Sydney casino. A report into the business also found the company had exploited vulnerable gamblers. Sign in to access your portfolio
Forbes
08-04-2025
- Business
- Forbes
Embattled Star Accepts $180 Million Funding Deal From U.S. Casino Operator Bally's
The Star complex, operated by Star Entertainment Group Ltd., in Sydney, Australia, on Tuesday, ... More Sept.3, 2024. Photographer: Brent Lewin/Bloomberg Star Entertainment has signed a A$300 million ($180 million) funding deal with Bally's Corp., potentially handing control of the cash-strapped Australian gambling company to the U.S. casino operator. Under the deal, Bally's will purchase a combination of convertible notes and subordinated debt, delivered in multiple stages, according to an exchange filing. The notes would eventually give Bally's a controlling stake of around 56.7% in Star on a fully diluted basis. Star said it is also in discussions with its largest shareholder, Investment Holdings (controlled by the family of Australian billionaire Bruce Mathieson) for a possible subscription of up to A$100 million to the funding package. 'If this occurs, the investment from Bally's will be reduced to A$200 million,' it said. Bally's is expected to inject an initial A$100 million by tomorrow, providing crucial support to keep the struggling Sydney-based group afloat. The remaining funds will follow, subject to regulatory and shareholder approvals, expected in late June. Star has been racing to raise fresh capital amid slumping gaming revenues. In February, the company said it is exploring various options to increase its liquidity, including the sale of its stake in the Brisbane property, as it has limited capacity to raise A$150 million in subordinated debt. Its troubles began in 2022 after regulators declared the company unfit to operate its casinos following media reports of money laundering at its properties.
