The Star Entertainment Group indicated on Monday that ‘there remains material uncertainty regarding the Group’s ability to continue as a going concern’, as it announced a AU$109.7 million ($77.44 million) loss for the fiscal half-year ending December 31st, 2025.
After significant management shifts at the end of last year, the group’s CEO Bruce Mathieson indicated that its focus now is on restructuring, cutting costs and boosting marketing to attract new customers, even as it continues to seek out ways to refinance its debt.
The group highlighted that ‘overall trading results remain at historical lows’, amongst a 10 percent drop in net revenue to AU$585 million ($412.95 million), on the back of an 18 percent drop in gaming revenue ‘which was impacted by continued challenging trading conditions (casino industry reforms) and loss of market share’.
The group gaming revenue decrease ‘also reflects the closure of the Treasury Brisbane Casino in August 2024’. Excluding the Treasury Brisbane Casino closure, the group notes that gaming revenue declined 9 percent, ‘largely due to a decline in Table Games revenue’.
Despite the lower revenue, the group managed to decrease its EBITDA loss from about AU$26 million ($18.35 million) in fiscal 1H25 (ending December 31st, 2024) to AU$7.6 million ($5.36 millon).
Spinning plates
As at the end of December 2025, the group only had available cash of AU$130 million ($91.77 million).
The group in early October received the final tranche of the AU$300 million ($211.77 million) strategic investment from Bally’s Corporation and Investment Holdings Ltd as part of its takeover and restructuring, with Bally’s now holding 38 percent of The Star’s issued capital and Investment Holdings owning 23 percent.
On February 26th the group indicated that it had executed a term sheet with WhiteHawk Capital Partners to potentially refinance all of the group’s debt and provide ‘incremental liquidity’, however the term sheet is non-binding ‘and may not lead to a definitive credit agreement’. The Star and WhiteHawk ‘are working towards a binding commitment by the end of March 2026, and to consummate the Refinancing Proposal by mid-May 2026’.
The day after the announcement, The Star indicated that it received a waiver on covenant tests under its Senior Facility Agreement – which it has been trying to pay down by offloading assets, including Treasury Brisbane Casino. However, ‘the Group will need to provide a refinancing commitment letter by 31 March 2026 and execute a refinancing of the SFA by 15 May 2026, to avoid a default under the terms of the SFA’.
‘The focus on liquidity remains a key priority for The Star, including management of the Company’s existing debt facilities and refinance alternatives’, highlighted the company.
Looming questions
Amongst the restructuring, the group is aiming to cut costs by streamlining its corporation operations, shifting ‘essential support functions’ from its corporate office to the ‘property level in Sydney, Gold Coast and Brisbane’.
The group is still in the process of exiting its joint venture with Chow Tai Fook Enterprises (CTFE) and Far East Consortium International (FEC) for Queen’s Wharf Brisbane. However, it did receive its AU$5 million ($3.53 million) fixed operator fee per month for operating The Star Brisbane during the half-year period. Part of the joint venture exit includes the consolidation of its Gold Coast property.
The exit from the Destination Brisbane Consortium (DBC) joint venture is still dependent on the group being released from its parent company guarantee of approximately AU$0.7 billion ($0.5 billion) in drawn debt for the DBC project by its JV partners. ‘While positive progress has been made in satisfying the conditions precedent’, these ‘were not met by the original sunset date of 30 November 2025 and as a results the JVPs (joint venture partners) may elect to terminate the JVP transaction’.
Looking ahead, questions still remain.
‘The reinstatement of The Star Sydney’s casino license and withdrawal by the Queensland Government of the deferred suspension of The Star Gold Coast’s casino license are critical to improving performance, attracting and retaining the best people and ensuring ongoing access to capital’, notes the company.
A further looming concern is the timing and quantity of an expected penalty from the nation’s financial watchdog, AUSTRAC, linked to prior AML/CTF breaches. However, the group has noted that such an outcome is not expected to affect its potential refinancing with WhiteHawk.
The swift shifts in management and cost-cutting initiatives, alongside financial weight behind its new investors, could help offset fiscal concerns long enough for the group to regain its financial footing.
The group’s CEO sought to assuage investors of the company’s future, noting “we have immense potential in our properties, and we are committed to transforming The Star into premier entertainment destinations’.
