The Star Entertainment Group Limited (ASX: SGR) has announced a significant reduction in its full-year earnings outlook for FY23 due to the ongoing impact of regulatory operating restrictions and declining consumer spending at its properties in Sydney and the Gold Coast. The company is experiencing unprecedented low levels of earnings performance, excluding the COVID-19 period.
If these conditions continue for the remainder of the financial year, underlying EBITDA is expected to be in the range of AU$280 million to AU$310 million, including the cost initiatives announced by the company. The company has also announced cost and restructuring initiatives aimed at reducing its operating cost base, including a reduction of approximately 500 full-time positions, the cancellation of short-term and other incentives for FY23, and a salary freeze for non-EBA employees. The company is also undergoing a strategic review of The Star Sydney in conjunction with Barrenjoey Capital Partners.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
