Troubled Australian casino firm The Star Entertainment Group Ltd reported a net loss of AUD302 million (US$191.9 million) for the six months to December 31, 2024. That compared with a profit of AUD9 million a year earlier, as stricter regulations and weaker discretionary spending negatively impacted the results, the company said in a Tuesday filing to the Australian Securities Exchange.
Revenue in the group’s fiscal first half, fell 24.4 percent year-on-year, to AUD650 million, stated the firm.
A trading suspension of the company’s shares since February – for not lodging its financial results – will end on Wednesday, it added.
Star Entertainment’s main venues are the Star Sydney casino complex in New South Wales, and the Star Brisbane (pictured), in Brisbane, Queensland.
Group revenue fell for the reporting period, “reflecting challenging trading conditions due to the implementation of casino operating reforms – including mandatory carded play and cash limits at The Star Sydney – and further loss of market share,” observed the casino firm.
Star Entertainment said domestic gaming revenue was down 32 percent on the prior-year period. “Excluding the impact from the closure of Treasury Brisbane Casino, domestic gaming revenue was down 20 percent,” with that in private gaming rooms down 25 percent, and that for main gaming floors down 16 percent, while non-gaming revenue was down 2 percent, it noted.
The company said it recorded a charge of AUD166 million after tax as “significant items”, relating to impairments, which included its investment in Destination Brisbane Consortium. The latter entity controls the Queen’s Wharf Brisbane real estate site, where The Star Brisbane casino resort – which had a phased launch starting in August last year – is based.
Other items encompassed debt refinancing costs, remediation costs and fines, it added.
“Clearly our performance continues to be very challenged as we navigate through a very difficult trading environment; we have been working very hard on establishing additional liquidity to allow the company to continue trading,” the firm’s chief executive, Steve McCann, said on Tuesday during a presentation briefing.
The New South Wales government has introduced laws that ban using cash for gaming in the state’s casinos to prevent money laundering, but not at pubs and clubs, with the disparity having a major impact on The Star Sydney’s revenues, Mr McCann said.
“Our loss of market share across the Sydney and Gold Coast properties has had a material impact on the business and we are continuing to operate in very challenging conditions,” remarked the CEO.
As of April 11, Star Entertainment had available cash of AUD98 million, according to Tuesday’s filing.
The casino group last week agreed to an AUD300 million investment package from U.S.-based casino operator Bally’s Corp and Star Entertainment’s largest shareholder, Investment Holdings Pty Ltd, the latter controlled by the Mathieson family.
That was after negotiation for a loan from investment group Salter Brothers Capital collapsed earlier this month.
Star Entertainment noted in its Tuesday announcement that the transaction to dispose of its 50-percent equity interest in Queen’s Wharf Brisbane to its Hong Kong-based partners “continues to progress”. The casino firm stated it was “targeting completion of the transaction by the end of June 2025”.
Since 2021, Star Entertainment has been involved in a number of probes by Australian state authorities over possible breaches of anti-money laundering and counter-terrorism laws.
