The Star Entertainment Group reported a narrower quarterly loss as revenue improved modestly, but warned that operating conditions remain challenging amid regulatory pressure, mandatory cash and carded-play rules, and uncertainty over financing and legal outcomes.
The casino operator posted revenue of AU$284 million ($184.6 million) in the three months to September 30, up 5 percent from the previous quarter but 19 percent lower than a year earlier. Its EBITDA loss narrowed to AU$13 million ($8.5 million) from AU$27 million ($17.6 million) in the June quarter.
The period “reflected stabilised trading in Sydney — albeit at historically low levels — and seasonally stronger volumes on the Gold Coast,” the company said. Trading conditions remain tough due to mandatory carded play and daily cash limits in New South Wales, alongside stricter regulatory oversight across its properties.
At The Star Sydney, revenue was flat quarter-on-quarter at AU$161 million ($104.7 million), while EBITDA improved but stayed negative at AU$10 million ($6.5 million). At The Star Gold Coast, revenue rose 9 percent to AU$105 million ($68.3 million) and EBITDA jumped to AU$6 million ($3.9 million).
Brisbane operations recorded an operator-fee revenue contribution of AU$14 million ($9.1 million) and an EBITDA loss of AU$9 million ($5.9 million) as the new integrated resort ramps up.
The group ended the quarter with AU$168 million (109.2 million) in available cash and said its ability to continue as a going concern depends on several material uncertainties, including future covenant waivers, a refinancing requirement if waivers are unavailable beyond December, and the outcome of an ongoing enforcement case by AUSTRAC.
Senior lenders waived covenant tests for September, but the company said it may need to refinance its main facility to avoid default if future waivers cannot be secured.
The Star also confirmed the receipt of the final AU$67 million ($43.6 million) tranche of its AU$300 million strategic investment from Bally’s Corporation and its investment partner in October, with completion still subject to regulatory approval.
Regulatory oversight across its casinos remains intense. The New South Wales casino regulator extended the appointment of the external manager overseeing Sydney operations until March 31, 2026, while Queensland regulators extended special management arrangements for Brisbane and Gold Coast until September 2026.
The group reiterated that licence suspensions and compliance supervision, along with the financial restructuring and asset-sale programme linked to its Brisbane joint-venture exit, continue to shape trading and capital-management priorities.
