The Star narrows losses as revenue softens

The Australian operator reported improved EBITDA performance despite weaker gaming volumes.

Australia.- The Star Entertainment Group has reported mixed results for the third quarter of its financial year. Losses were reduced, but so was revenue.

According to the report, group revenue for the period ended March 31 reached AU$266m (US$173m), down 12 per cent quarter-on-quarter and flat compared to the prior corresponding period. This was attributed to seasonal softness and lower gaming visitation, particularly in Sydney.

The company posted an EBITDA loss of just AU$1m (US$720,000), an improvement from the AU$24m (US$15.6m) loss recorded a year earlier. The previous quarter had seen positive EBITDA of AU$6m (US$3.9m) due to a one-off revenue adjustment.

Earnings performance was largely driven by cost-cutting measures implemented by the new leadership team. Operating expenses fell to AU$206m (US$134m), down 11 per cent quarter-on-quarter and 10 per cent year-on-year, reflecting both reduced volumes and ongoing efficiency initiatives.

Sydney revenue fell 10 per cent sequentially amid weaker table game activity and the impact of regulatory reforms such as mandatory carded play and cash limits. Meanwhile, the Gold Coast property showed relative resilience, with revenue increasing 5 per cent year-on-year to AU$101m (US$65.7m), supported by stronger electronic gaming and hospitality segments.

A key development during the quarter was the completion of the first stage of The Star’s exit from the Destination Brisbane Consortium (DBC). The company will receive a fixed annual casino operator fee of AU$18m (US$11.7m) alongside performance-based incentives. The move also resulted in the release of The Star’s guarantee over DBC’s debt facilities, marking a step towards simplifying its balance sheet and focusing on core assets.

The Star must complete a refinancing of its existing debt facilities by May 15, 2026. The company has already signed a binding commitment letter with funds associated with WhiteHawk Capital Partners and received the necessary regulatory approvals. Meanwhile, regulatory challenges persist. The Star Sydney’s casino licence remains suspended, while oversight measures continue across other properties.

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See also: The Star secures binding refinancing commitment with WhiteHawk Capital Partners

The Australian operator reported improved EBITDA performance despite weaker gaming volumes. Australia.- The Star Entertainment Group has reported mixed results for the third quarter of its financial year. Losses were reduced, but so was revenue. According to the report, group revenue for the period ended March 31 reached AU$266m (US$173m), down 12 per cent quarter-on-quarter…