The Star Entertainment Group reduced its EBITDA loss for the quarter ended June 30th by 70 percent year-on-year to AU$8 million ($5.6 million), supported by cost reductions and stronger gaming volumes at The Star Gold Coast. However, the loss widened from the preceding three-month period.
Revenue for the three months totaled AU$265 million ($185 million), down 2 percent from the prior-year period and broadly unchanged from the quarter ended March 31st. The EBITDA loss compared with AU$27 million ($18.9 million) a year earlier and AU$1 million ($698,500) in the preceding quarter.
The figures were disclosed in an unaudited report filed with the Australian Securities Exchange on July 24th. EBITDA excludes significant items, which will be reported separately with The Star’s fiscal 2026 results.
Operating expenses declined by 11 percent year-on-year to AU$206 million ($144 million), as lower corporate costs offset increased marketing investment and seasonally higher labor expenses compared with the preceding quarter.
Gold Coast outperforms Sydney
The Star said the result included ‘stabilised trading’ at its Sydney property, although trading remained at ‘historical lows’.
The Star Sydney generated revenue of AU$150 million ($105 million), up 2 percent from the preceding quarter but 7 percent lower year-on-year. Property EBITDA fell by 35 percent to AU$10 million ($7 million), while the segment recorded an AU$10 million EBITDA loss after corporate allocations.
Gaming revenue fell by 4 percent due to lower table-game volumes. Average daily revenue has declined by 20 percent since mandatory carded play and an AU$5,000 daily cash limit were fully implemented in October 2024.
The Star Gold Coast delivered the strongest property performance, with revenue rising by 12 percent year-on-year to AU$107 million ($74.7 million). Property EBITDA increased by 51 percent to AU$22 million ($15.4 million), driven by growth in both table games and electronic gaming machines.
At The Star Brisbane, operator-fee revenue dropped to AU$5 million ($3.5 million) from AU$15 million ($10.5 million) in the preceding quarter. The decline followed a reduction in the operator fee payable to The Star under an amended Casino Management Agreement after the company completed its exit from the Destination Brisbane Consortium (DBC) joint venture. The revised fee arrangement remains subject to regulatory approval.
Going-concern uncertainty remains
Cash and cash equivalents increased to AU$267 million ($186 million) as of June 30th from AU$120 million three months earlier, mainly following a $390 million secured refinancing with WhiteHawk Capital Partners.
Operating cash flow for the quarter was positive at AU$31.8 million ($22.2 million), supported by previously escrowed Brisbane operator fees and an AU$18.1 million tax refund. However, full-year operating cash flow remained negative at AU$101.1 million ($70.6 million).
Despite completing the refinancing, The Star said its ability to continue as a going concern remained dependent on material uncertainties, some outside its control. There was ‘no assurance’ they would be resolved before the company files its audited annual financial statements.
