Australia’s Star Entertainment Group fell to an AU$302 million (US$192 million) loss in the six months to 31 December 2024, while monthly trading has continued to deteriorate in the three months since due to adverse weather events and what it describes as an “uneven competitive environment”.
Star released its 1H25 financial results on Tuesday, albeit more than a month late, having finally secured last week a financial lifeline by way of a combined AU$300 million (US$191 million) investment from US casino operator Bally’s Corp and Bruce Mathieson’s Investment Holdings Pty Ltd. The first AU$100 million (US$63.5 million) instalment from Bally’s was received on 9 April, the company confirmed.
Nevertheless, Star’s financials continue to make for difficult reading, with group revenue falling 25% year-on-year to AU$650 million (US$413 million) with an EBITDA loss of AU$26 million (US$16.5 million) – reversing an EBITDA gain of AU$61 million (US$38.7 million) in 1H24.
Group revenue included AU$464 million (US$295 million) in domestic gaming revenue, down 32% year-on-year, although non-gaming was 1.8% higher at AU$185.6 million (US$118 million).
Star noted that the 1H25 performance was particularly impacted by the introduction of mandatory carded play and cash limits at The Star Sydney and challenging trading conditions caused by casino operating reforms and market share loss at The Star Gold Coast.
That performance has continued to slide, with Star revealing that group-wide revenue fell another 9% quarter-on-quarter in the three months to 31 March 2025 to AU$271 million (US$172 million). An Adjusted EBITDA loss of AU$21 million (US$13.3 million) in the March quarter compared with an AU$8 million (US$5.1 million) loss in the December quarter and an AU$38 million (US$24.1 million) gain in the March 2024 quarter.
In the March 2025 quarter, The Star Gold Coast saw revenues drop by 13% sequentially and 17% year-on-year to AU$96 million (US$61.0 million), impacted by a five-day closure last month due to Tropical Cyclone Alfred.
The Star Sydney saw revenues down 8% quarter-on-quarter and 26% year-on-year to AU$161 million (US$102 million).
Despite the setbacks, Star expressed optimism during a post-earnings release investor call that it can reverse its fortunes in the long-term – aided by the recent Bally’s deal and a previously announced agreement to offload its 50% stake in The Star Brisbane to joint venture partners Chow Tai Fook and Far East Consortium.
Star’s Group CEO and Managing Director Steve McCann described the agreement, which will also see Star gain full ownership of the Andaz and Dorsett hotel towers at The Star Gold Coast, as a “critical milestone for the company in providing near-term liquidity and a pathway for a viable future for the Star and its stakeholders.”
Star said it had available cash of AU$98 million (US$62.3 million) as of 11 April 2025 following receipt of the first AU$100 million tranche from Bally’s.
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