Star Entertainment Shares Rise on AU$60M Asset Sale Amid Liquidity Concerns

2 min read | January 29, 2025 01:09 PM AEDT | By Team Kalkine Media

Star Entertainment Shares Rise on AU$60M Asset Sale Amid Liquidity Concerns — Image source: shutterstock

Divestment Deal Lifts Sentiment

The embattled casino operator revealed that its subsidiary, Star Entertainment Sydney Properties, has signed an exclusivity arrangement and binding term sheet to sell The Star Sydney Event Centre and other spaces within The Star Sydney complex to Foundation Theatres.

The deal, valued at $60 million, is a much-needed cash injection for the struggling company. However, it remains subject to regulatory and government approvals, with final transaction documents still pending.

Financial Woes Continue

Star Entertainment has endured a difficult 2024, and 2025 has not provided much relief. On January 20, the company’s share price plummeted 17.9% after a disappointing Q2 update.

The casino giant reported a 15% drop in quarterly revenue to $299 million. While EBITDA improved from an $18 million loss in Q1 to an $8 million loss in Q2, it remains in negative territory.

With only $78 million in available cash, Star’s management has warned of continued financial and liquidity challenges. The company is actively exploring additional funding solutions to avoid further financial distress.

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