Sports Entertainment Group Forecasts 40% EBITDA Growth Amid Strategic Refocus

Sports Entertainment Group Limited (SEG) has upgraded its FY25 EBITDA guidance to between $9 million and $10 million, up from $6.5 million in FY24 continuing operations.

The projection represents a year-on-year increase of at least 40%.

The company also anticipates reporting a positive net cash position for the year, despite paying a $5.5 million special dividend in October 2024. This position excludes a $19 million receivable from the Perth Wildcats sale, with $15 million due by 30 June 2026 and a further $4 million by 30 June 2028.

Cost Discipline and Complementary Services Drive Margin Expansion

SEG credited its growth to disciplined cost management and the performance of its ‘Complementary Services’ units, which have delivered strong EBITDA contributions through a “whole of sport” strategy. These results underscore the company’s emphasis on operational efficiency and diversified revenue streams.

Strategic Initiatives Completed in FY25

Several key projects were executed in FY25 to reset the group’s cost base and position the business for sustained growth:

• Media Expansion: SEG began producing Channel 7’s flagship football programs, Agenda Setters and Unfiltered.
• Production Capability: A second TV studio was commissioned, accommodating a live audience of up to 80.
• Racing Rights: The company secured a five-year television production contract with Harness Racing Victoria.
• Digital Growth: SEG launched a redesigned website and mobile app, featuring upgraded tipping, wagering, and gamification functionality.
• Portfolio Rationalisation: SEG completed the divestment of its New Zealand sports teams and the Perth Wildcats, the latter enabling both debt reduction and a return of capital to shareholders.

The NZ sports team divestment is expected to lift FY25 profit by removing a $0.4 million drag.

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