Star Entertainment Reports Ongoing Q4 Challenges Despite Bally’s Support
Overview of Star Entertainment’s Q4 Financial Performance
Star Entertainment Group Limited has released its unaudited financial results for the quarter ending June 30, 2025 (Q4). Despite financial backing from Bally’s, the company continues to face operational difficulties and diminished financial returns.
Q4 Financial Summary: Stability Amid Soft Performance
During the fourth quarter, Star Entertainment reported revenues of AUD 270 million (approximately $175 million), maintaining a level similar to previous quarters. However, the company experienced an EBITDA loss of AUD 27 million ($17.5 million), which is slightly higher than the AUD 24 million loss reported in the same period last year.
Specifically, the Star Sydney property saw a modest increase in revenue reaching AUD 162 million ($105 million), but the EBITDA loss widened to AUD 14 million ($9 million).
The Star Gold Coast demonstrated steady revenue of AUD 96 million ($62.2 million) and achieved an EBITDA gain of AUD 2 million ($1.3 million), showing some positive momentum.
Meanwhile, The Star Brisbane experienced a slight rise in operator fee revenue to AUD 8 million ($5.2 million), with an improved EBITDA loss reduction to AUD 15 million ($9.7 million).
Additionally, Treasury Brisbane reported revenue of AUD 4 million ($2.6 million) and an EBITDA figure close to break-even.
The company attributed these results to ongoing operational challenges despite Bally’s AUD 300 million investment. By the end of Q4, Star Entertainment maintained cash reserves of AUD 234 million.
Asset Sales and Strategic Moves to Improve Liquidity
In its efforts to strengthen liquidity, Star Entertainment sold its Sydney Event Centre and related spaces for AUD 60 million during the quarter. The company also held a shareholder meeting that approved the continuation of Bally’s investment, enabling the partnership to move forward.
On June 30, updates were provided regarding ongoing negotiations with joint venture partners about Star’s intention to divest its stake in the Destination Brisbane Consortium. These discussions led to an extension of the agreement deadline, affording more time to finalize arrangements.
Star Entertainment has implemented mandatory card checking and a cash limit of AUD 5,000 at The Star Sydney casino, with plans to lower the cash limit to AUD 1,000 starting August 19. Similar regulatory measures are under consideration by the Queensland Government and may impact operations at The Star Gold Coast and The Star Brisbane.
Regulatory Challenges and Licensing Status
The Star Sydney’s gaming license remains suspended, with a special manager’s term extended until September 30, 2025, as the company works to restore regulatory compliance. A suitability submission is expected by the end of August.
The Star Gold Coast faces a similar suspension status, with its special manager’s term also extended to September 30, 2025. The company plans to submit a sustainability report by July 31.
Conversely, The Star Brisbane successfully obtained its gaming license and reopened operations on August 29, 2024. However, the term of its external advisor has been prolonged to September 30, demonstrating continued oversight.