Star Ent narrows year loss to US$220mln on flat revenue

Australian casino operator The Star Entertainment Group Ltd reported a AUD307.3-million (US$220.3-million) net loss after tax for the year to June 30, it said in a Monday announcement to the Australian Securities Exchange. The loss was nonetheless a 28.2 percent improvement on the AUD427.9-million loss in the prior-year period. The result was on group revenue that was nearly flat year-on-year, at just under AUD1.31 billion. Normalised revenue – excluding significant items – was AUD1.10 billion, down 2.2 percent year-on-year. Normalised earnings before interest, taxation, depreciation and amortisation (EBITDA) were negative to the tune of AUD16.1 million, though that was a 78.9 percent improvement year-on-year. The improvement was supported by “significant reductions in corporate costs and higher operator fee revenue”. In a press release, the group said there had been a AUD75-million reduction in financial-year 2026 group corporate costs. No dividend was given for the latest reporting period. Shareholders of Star Entertainment approved in June 2025 an AUD300.0-million rescue package, led by United States-based casino group Bally’s Corp, which became the Australian firm’s largest shareholder. Bally’s chairman, Soo Kim, also became chairman of Star Entertainment in December 2025. Mr Kim said in a message in Star Entertainment’s latest annual report: “While we are no strangers to casino turnarounds, The Star [Entertainment] is one of the most complex challenges we have encountered.” The firm runs The Star Sydney casino complex in Sydney, New South Wales, and The Star Gold Coast at Broadbeach, Queensland. The firm also receives an operator fee revenue for The Star Brisbane, in Brisbane, Queensland. The chairman noted that “important milestones” during the year included debt refinancing. During the period, Star Entertainment completed the refinancing of its debt with a US$390 million secured term loan from WhiteHawk Capital Partners. Subsequently, Star Entertainment increased its available liquidity by approximately AUD130 million. Destination Brisbane exit Another milestone, said the chairman, was “completion of the divestment” of its interest in the Destination Brisbane Consortium (DBC) that holds the real estate portion of Queen’s Wharf, Brisbane (pictured), where The Star Brisbane is based. Monday’s update noted that on March 31 this year, Star Entertainment completed the first stage of what is known as the joint venture partner transaction, namely the casino firm’s exit from DBC. It involves Hong Kong-based entities Chow Tai Fook Enterprises Ltd and Far East Consortium International Ltd. As a result, Star Entertainment’s parent company guarantee – previously provided in respect of Star Entertainment’s 50 percent of DBC’s AUD1.4 billion debt facilities – was fully released. A second stage of the joint venture partner transaction should be complete “by no later than 31 March 2027”, per Monday’s update. Mr Kim added there had also been “good progress” towards the completion of the acquisition of the Destination Gold Coast Consortium interests which “rationalises” the group’s portfolio and “has eliminated a large contingent liability”. The chairman added in terms of the overall business: “Most critically, monthly revenues are no longer declining year-on-year, and the business is cash flow positive for the first time in years.” The press release said that in the reporting period that marked the second anniversary of The Star Brisbane’s opening, the property’s monthly EBITDAM (EBITDA and management fees) run-rate for the three months up to June 30 had been averaging AUD13 million, i.e., “at all-time records”. Nonetheless, in an investor presentation also filed on Monday, the firm said there “continues to be material uncertainties… that cast significant doubt” on its “going concern” status. They included: “The group’s ability to return to suitability via the restoration of The Star Sydney’s casino licence, and the withdrawal by the Queensland government of the suspension of The Star Gold Coast’s casino licence.’ As of June 30, the group had total cash and cash equivalents of AUD267 million, and restricted deposits amounting to AUD101 million.