Australian casino operator Star Entertainment has reported a larger-than-anticipated net loss of A$302 million ($192.29 million) for the first half of the 2024 fiscal year, with continued regulatory fallout and declining revenues intensifying the company’s financial strain.
The result, covering the six months ending December 31, was revealed in a filing to the Australian Securities Exchange (ASX) on Tuesday and arrives ahead of a shareholder vote in June on a proposed rescue deal.
The company’s shares, which had been suspended from trading since February due to a delay in lodging its financial results, are set to resume trading on Wednesday. Star’s revenue dropped A$216 million ($137.53 million) from the same period a year earlier, falling to A$650 million ($413.86 million).
Chief Executive Officer Steve McCann acknowledged the challenging conditions on an investor call, noting the combined weight of regulatory reforms and reduced market share across key properties.
“Clearly our performance continues to be very challenged as we navigate through a very difficult trading environment,” McCann said. “We have been working very hard on establishing additional liquidity to allow the company to continue trading through.”
The group has been under sustained pressure from government investigations into alleged breaches of anti-money laundering and counter-terrorism financing laws, first surfacing in 2021.
In the meantime, regulatory changes in New South Wales banning the use of cash for gambling transactions in casinos, but not in pubs and clubs, have compounded difficulties for Star’s Sydney operations.
“The ongoing impact of regulatory reforms … and 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,” McCann added.
Star has turned to a rescue package to stabilize operations. Last week, the company announced an A$300 million ($191 million) refinancing deal backed by U.S.-based Bally’s Corporation and Star’s major shareholders, the Mathieson family. The deal comes after a previously arranged loan agreement with Salter Brothers Capital fell through earlier this month.
Under the proposed terms, Bally’s would acquire a controlling 56.7% stake in Star, subject to shareholder approval at a meeting scheduled for June. The board has recommended shareholders vote in favor of the deal in the absence of a superior offer.
Bally’s Chairman Soo Kim told Reuters the firm seized the opportunity to invest as Star began divesting assets to stay afloat.
In its update, Star also disclosed that revenue had declined in the third quarter due to lower visitation and adverse weather events. Sydney casino revenue was down 8% compared to the previous quarter, while the Gold Coast property reported a five-day closure during Cyclone Alfred, which the company estimates reduced earnings before interest, taxes, depreciation and amortization (EBITDA) by approximately A$3 million ($1.91 million).
Original article: https://www.yogonet.com/international/news/2025/04/15/101662-star-entertainment-posts-192-million-loss-as-regulatory-pressures-mount-ahead-of-shareholder-vote
