30-04-2025
Star Entertainment Group reports $21m loss as ex-Tropical Cyclone Alfred, gambling restrictions hurt embattled casino
Star Entertainment Group has reported a $21m loss for the first three months of this year as dwindling visitor numbers, gaming restrictions and the ex-Tropical Cyclone Alfred plagued the embattled casino operator.
The company on Wednesday informed shareholders that its future still remains in doubt just weeks after announcing it has agreed to a takeover bid from US gaming giant Bally's Corporation and Australian publican Bruce Mathieson.
Star revealed revenue for the third quarter of the 2025 financial year was down nine per cent from the December quarter to $271m – a 35 per cent year-on-year fall.
Its earnings before interest, taxation, depreciation and amortisation – which measures the business' core profitability – was down to a $21m loss from an $8m drop in the previous quarter.
Star said the impacts of ex-Tropical Cyclone Alfred hurt revenue for its Gold Coast venue with the company reporting a 13 per cent revenue slump compared to the December quarter.
It also suffered an EBITDA loss of $1m at the Brisbane venue, in part due to closing down from the cyclone.
The casino group has also blamed the introduction of carded play and cash limits for the decline in revenue.
Its daily revenue has fallen 17 per cent at its Sydney venue, compared to its four-week daily average before August 19, after the restrictions were implemented in October.
Revenue at the Sydney venue has dived eight per cent compared to the previous quarter and may fall further as the $5000 cash limit will be reduced to $1000 in August.
The gambling restrictions have been legislated for the Star Gold Coast but the Queensland government will determine when they are implemented.
Shareholders were informed the company is desperately looking to secure a near-term cash injection and complete multiple deals to keep the business afloat.
'There remains material uncertainty regarding the Group's ability to continue as a going concern,' the company said.
It needs to complete the takeover deal from Bally's and Mr Mathieson, secure the $58m being held in escrow from the sale of the Sydney events space and completely exit from the Brisbane Queen's Wharf complex it sold to Hong Kong investors.
Star's liquidity position also remains in doubt as it reported having $44m in cash as of March 31.
However, this was prior to Star receiving a $100m cash injection as part of the takeover offer with the casino group revealing earlier this month it had $98m.
The update comes several weeks after Star revealed it lost $302m over the first half of the 2025 financial year.
The casino operator was pulled out of its trading halt it was in after failing to publish its results by the February 28 deadline.
Star had about $450m in debt at the end of 2024 and while the company's directors admitted there is uncertainty about Star's future, it noted the company could meet its liabilities if certain deals fall in place.
The takeover deal saw $100m already injected into Star while the remaining $200 million - which is convertible to shares - will be paid after a shareholder vote and after the deal receives regulatory approval from the Foreign Investment Review Board.
