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.
Loading
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
43 minutes ago
- AU Financial Review
Corinthian Energy Resources: Australian company to tackle Philippines waste problem with $18 million capital raise
Corinthian Energy Resources, a Perth-based technology player that turns municipal waste into energy, is hoping to help the Northern Mindanao region of the Philippines tackle its overflowing landfills. Rubbish in a gutter as customers shop in the Philippines, in 2017. Bloomberg
Perth Now
an hour ago
- Perth Now
US central bank leaves interest rates unchanged
The US Federal Reserve has left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Fed's decision on Wednesday leaves its key short-term rate at about 4.3 per cent, where it has stood after the US central bank reduced it three times last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trump's sweeping tariffs. Federal Reserve issues #FOMC statement: Federal Reserve (@federalreserve) July 30, 2025 Powell and other Fed officials say they want to see how Trump's duties on imports will affect inflation and the broader economy. So far the duties have lifted costs of some goods such as appliances, furniture and toys and overall inflation has risen slightly although less than many economists had expected. There were some signs of splits in the Fed's ranks: governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs while nine officials, including Powell, favoured standing pat. It is the first time in more than three decades that two of the seven Washington DC-based governors have dissented. One official, governor Adriana Kugler, was absent and did not vote. The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly urged the central bank to reduce borrowing costs.
AU Financial Review
2 hours ago
- AU Financial Review
ASX to slip, Fed decision and Powell's comments awaited
Australian shares are poised to rise, tracking gains in New York after data reconfirmed the resilience of the US economy. Investors are waiting for the Federal Reserve's 4am AEST policy decision. Meta and Microsoft are set to report results after Wall Street's closing bell at 6am AEST. US government bond yields were higher after the Treasury Department signalled it will rely more on the shortest-dated securities to fund the gaping federal deficit at least until 2026. The S&P 500, coming off its best streak of gains since 2020, is about to enter what has historically been its toughest stretch of the year. Over the past three decades, the benchmark has performed the worst in August and September, losing 0.7 per cent on average in each month, compared with a 1.1 per cent gain on average across other months, data compiled by Bloomberg show. The US economy expanded an annualised 3 per cent pace in the June quarter, however economists were wary of reading too much into the print. 'We retain our outlook for a slowdown in US GDP growth in 2024, as restrictive trade and immigration policies outweigh the benefits from fiscal policy and deregulation,' Morgan Stanley's Michael Gapen wrote in a note. 'Prior to this report, we were forecasting Q4/Q4 growth of 0.8 per cent in 2025; we now expect 1.0 per cent, reflecting the stronger 2Q out turn but no extrapolation into later quarters. We continue to expect 1.1 per cent growth in 2026.' Market highlights ASX futures are pointing down 7 points or 0.1 per cent to 8708. All US prices near 2.30pm New York time. *Bloomberg pricing Today's agenda Quarterly reports expected on Thursday from Beach Energy, Liontown Resources and Origin Energy. RBA deputy governor Andrew Hauser will participate in a fireside chat at the Barrenjoey Economic Forum, Sydney at 9.20am AEST. A wave of data is set for release at 11.30am AEST, including June retail sales, building approvals, private sector as well as import and export price data. NAB said its retail transactions data suggests a strong rise in the month and 'we have pencilled in a 1.0 per cent month-over-month increase'. As for overseas, Japan will release June retail sales and industrial output, China will release manufacturing and non-manufacturing PMIs for July and the Bank of Japan will hold a policy meeting. Later, the US will release June personal spending and core PCE price data, a quarterly employment cost index and weekly jobless claims. On the BoJ decision, TD Securities said: ' US-Japan trade deal was struck, but we expect the BoJ to stand pat this month, holding the target rate at 0.5 per cent. 'After the poor showing of the ruling coalition in the Upper House elections, PM Ishiba is facing calls to step down and Japan is likely to enter a phase of political uncertainty. That said, Governor Ueda may signal a hike in October is still on the table as inflation is running at a 30-year high and we will get more clarity on both trade and politics then.' Top stories Rio Tinto boss defends lithium push as earnings slump cuts dividend | The country's biggest iron ore exporter will pay its lowest dividend since 2018 after lower prices and weaker sales volumes hurt its half-year bottom line. | India 'is our friend', the US president said on his Truth Social platform, but its tariffs 'are far too high' on US products. Atlassian gang back together as Farquhar hits Canberra to spruik AI | The billionaire co-founders of the software giant reunited at the National Press Club, setting aside long speculation of a rift in their relationship. | A broader push for higher taxes at the productivity roundtable in August could soften hostility towards the proposed super tax, the government believes. | Commonwealth Bank held the rights to sponsor Cricket Australia for four decades – then Westpac CEO Anthony Miller stole it from under their nose.
