Star losses rise with Queen's Wharf deal on verge of collapse
Underlying losses increased for the June quarter at Star, but the bigger problem is the possible eleventh-hour failure of the sale, according to an update to the ASX.
Star's quarterly report – which precedes audited financial accounts due next month – states that it made a loss before interest, tax, depreciation and amortization costs (EBITDA) of $27 million for the quarter ending June 30 on revenue of $270 million.
The casino operator said mandatory carded play and $5000 cash limits at its flagship Sydney casino have continued to drag on its gambling performance, with average daily revenue down 17 per cent since it was introduced in August last year.
Cash limits are due to drop to $1000 within weeks in Sydney, with its Queensland operations due to follow with similar reforms.
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Star also flagged that it is unlikely to finalise a deal to sell its share of Brisbane's Queen's Wharf casino to its consortium partners – Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium – by the July 31 deadline.
The parties are renegotiating the deal after the Asian partners threatened to walk away from the March agreement.
'In The Star's view, based on the current status of discussions, it is unlikely that the parties will be in a position to finalise long form documents by 31 July 2025,' it said.
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News.com.au
an hour ago
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