Star cuts quarterly losses as Gold Coast offsets Sydney slump
The Star Entertainment Group has reported a sharp improvement in quarterly earnings despite continued weak trading at its flagship Sydney casino, with stronger Gold Coast performance and aggressive cost cutting helping narrow losses.
The embattled casino operator posted fourth-quarter revenue of $265 million for the three months to June 30, broadly unchanged from the previous quarter and down two per cent year-on-year. EBITDA losses before significant items narrowed to $8 million, a 70 per cent improvement on the $27 million loss recorded in the corresponding quarter last year.
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The result continues The Star’s gradual financial recovery following its refinancing, Brisbane asset sale and sweeping restructuring program, although the company warned it still faces material uncertainties over its ability to continue as a going concern.
Trading at The Star Sydney stabilised during the quarter but remained “at historical lows”, with revenue rising two per cent on the March quarter to $150 million, although it remained seven per cent below the prior corresponding period.
The company said weaker table game activity and softer non-gaming revenue continued to weigh on Sydney’s performance, despite strong growth in electronic gaming machine revenue.
The impact of New South Wales’ casino reforms also continues to be felt. Since mandatory carded play and $5,000 daily cash limits were fully implemented across the gaming floor in October 2024, average daily revenue has fallen by 20 per cent compared to trading before the reforms began.
In contrast, The Star Gold Coast continued to outperform, with revenue climbing 12 per cent year-on-year to $107 million. Gaming revenue increased 21 per cent, driven by growth across both table games and electronic gaming machines, while property EBITDA rose 51 per cent to $22 million.
The Star said the quarter also benefited from lower operator fees relating to The Star Brisbane, pending regulatory approval of an amended Casino Management Agreement following its exit from the Destination Brisbane Consortium joint venture earlier this year.
The company confirmed it continues to work towards completing the second stage of its broader transaction with joint venture partners Chow Tai Fook Enterprises and Far East Consortium, which includes consolidating its Gold Coast position. Completion is expected during the second half of 2026 and no later than March 31, 2027.
The Star also highlighted the completion of its US$390 million refinancing with WhiteHawk Capital Partners in May, which increased available liquidity by approximately A$130 million.
Cash and cash equivalents stood at $267 million at June 30, more than doubling from $120 million three months earlier.
Management said its new leadership team continued implementing cost-saving measures during the quarter, including streamlining the corporate office and reviewing supplier contracts and property-level operating costs.
Operating expenses fell 11 per cent year-on-year to $206 million, reflecting more than $200 million in annualised cost savings achieved since September 2024.
Despite the improved financial position, Star Entertainment acknowledged it remains exposed to several material uncertainties that could affect its assessment as a going concern when it releases its audited full-year results.
Regulatory oversight also remains firmly in place.
The Star Sydney’s casino licence remains suspended, with the NSW-appointed manager’s term extended until 30 September 2026. The suspension of The Star Gold Coast’s licence also remains deferred until the same date under the supervision of a Special Manager, while Brisbane continues to operate under an External Adviser.
The company said it continues to engage with regulators and governments across New South Wales and Queensland as it works to restore its casino licences and complete its broader corporate turnaround.
