The Star Entertainment Group reported lower revenue in its latest financial report, but managed to narrow its losses compared to previous quarters.
For the three months ended 31 March, the group reported revenue of A$266m. That figure is down from A$301m in the prior quarter and just under the A$268m posted a year earlier. However, EBITDA came in at a A$1m loss; a year ago, that loss was A$24m.
Since mandatory carded play and cash limits were fully rolled out in October 2024, average daily revenue has dropped sharply compared with the period before those measures began. That decline is still evident in the latest quarter’s figures.
Sydney continues to drag. The property generated A$147m in revenue, falling 10% quarter-on-quarter and 9% year-on-year. Table games were again cited as a weak point, although exact figures were not included.
The venue still ran at a loss, though smaller than before, with EBITDA at negative A$4m. That represents an improvement compared to prior periods but is still indicative of ongoing pressure.
Earnings continue to fluctuate in a non-linear way. On the Gold Coast, revenue reached A$101m, which was lower than the previous quarter but higher than last year, which was disrupted by a cyclone.
EBITDA there stood at $8m, as electronic gaming and hospitality held up better than tables.
Brisbane is now a different story. The group no longer holds its equity stake after completing the first stage of its exit from the joint venture at the start of April.
For the quarter itself, Star booked A$15m in operator fee revenue and an EBITDA loss of A$4m. The new structure shifts the operator’s earnings profile, with a fixed A$18m annual fee plus performance-linked components.
Cost-cutting initiatives still underway
Costs continue to be cut back at Star, and the effect shows. Operating expenses dropped to A$206m, from A$230m in the prior quarter and A$228m a year earlier.
The company has been trimming corporate functions and looking again at supplier contracts. That process is still ongoing, and additional cuts are likely.
Available cash stood at A$90m at the end of March, down from A$130m three months earlier. The group is pushing ahead with a A$550m debt refinancing led by WhiteHawk Capital Partners.
It has regulatory approval in place and is working to close before mid-May, which it needs to do to stay within the terms of an existing lender waiver.
Regulatory settings remain largely unchanged. Star’s Sydney casino licence is still suspended, with a manager in place through at least September.
In Queensland, regulators have similarly maintained supervisory oversight across the group’s properties.
Working alongside its major shareholders, The Star’s board is reassessing how its operations are structured and resourced. Cost reduction measures have started to roll out in stages, including changes within the corporate office.
Additional savings efforts across its properties, along with a broader review of operations and indirect spending, remain in progress and are expected to lower ongoing costs further.
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