The Star Entertainment Group revenue decreases year-over-year in H1
Revenue for the first half of the financial year was AU$650m (US$413m).
Australia.- The Star Entertainment Group has reported net revenue of AU$650m (US$413m) for the first half of the financial year 2025. Revenue was down 25 per cent year-on-year, mainly due to challenging trading conditions amid the implementation of operating reforms, including mandatory carded play and cash limits at The Star Sydney, and a loss of market share.
Domestic gaming revenue was down 32 per cent year-on-year to AU$464m (US$295m) while non-gaming revenue was up 1.8 per cent to AU$185.6m (US$118m).
The casino operator posted a loss of AU$302m (US$192m). EBITDA declined by 77.19 per cent in year-on-year terms, to AU$26m (US$16.5m). When compared to the second half of the financial year 2024, EBITDA was down 57.38 per cent.
The Star Sydney revenue was AU$362.2m (US$230.2m) for the period, down 19.5 per cent year-on-year. EBITDA was AU$24.6m (US$15.64m). The Star Gold Coast revenue was AU$218.2m (US$138.73m), down 8.4 per cent, while EBITDA was AU$18.1m (US$11.51m). Treasury Brisbane revenue was down 69.1 per cent to AU$54.8m (US$34.84m).
The company said: “For FY25YTD, monthly trading in Q2 had stabilised compared to Q1, however, there has been a softening in trading during Q3, with revenue declining by 9 per cent across the group compared to Q2.
“The decline was more pronounced at The Star Gold Coast, which declined 13 per cent in Q3 compared to Q2, partially due to generally softer trading conditions but also the closure of the property for 5 days due to Tropical Cyclone Alfred and the gradual return to a pre-closure run rate following re-opening.
“The Star Sydney revenue has declined by 8 per cent in Q3 compared to Q2, reflecting a seasonal softening in revenue. The Star continues to be impacted by an uneven competitive environment with pubs and clubs, which continues to negatively impact on operating performance.”
A week ago, the casino operator announced that its largest shareholder, the Mathieson family’s Investment Holdings, had subscribed for AU$100m (US$60.5m) as part of a new AU$300m financing agreement with Bally’s Corporation. The move will reduce the investment from Bally’s to AU$200m (US$121m), while the principal value of the transaction remains at AU$300m.
In another filing, the casino operator has announced that it has completed the sale of The Star Sydney Event Centre and some other spaces at The Star Sydney to Foundation Theatres for AU$60m (US$37.5m). All regulatory consents were obtained, including from the NSW Independent Casino Commission (NICC) and the state of New South Wales.
