SGR -7.35%: the casino group struggled today, nearly trading below the price of the February equity raise after downgrading guidance. The group now expects EBITDA for FY23 between $280-310m, around 15% below prior guidance and consensus expectations, blaming regulatory restrictions and a deteriorating consumer environment. In an effort to recoup some of the lost earnings, Star is looking to add to their cost-cutting measures by letting go of 500 full-time equivalent jobs, freezing any non-EBA pay increases and cancelling any short-term incentives aiming to cut an annualized $60m in costs in addition to the $40m that was previously announced. In addition to the above, they have appointed bankers to conduct a strategic review of their assets, signalling a potential sale of their cornerstone Sydney Casino, right when Crown has started competing from the other side of Darling Harbour.
MM is neutral SGR
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