The Star Entertainment Group is optimistic about its operational future following a rollercoaster end to 2025 that culminated in a significant net loss of over AUS$75m on its books.
The financial results for the six months ending 31 December 2025 were also the first reporting period for the operator under new management, following the completion of an AUD $300m strategic investment from Bally’s Corporation and Investment Holdings late last year.
Bruce Mathieson Jnr was appointed Group Chief Executive Officer of The Star in December, with one of his first tasks being to review the operator’s resourcing structure and strategy, resulting in changes to its operational and marketing strategy as well as the roll-out of customer-focused initiatives and implementing further cost cuts.
Mathieson Jnr said: “Our corporate office is being streamlined, and essential support functions will be managed at the property level in Sydney, Gold Coast and Brisbane. To support long-term success, these changes will strengthen our financial position.
“We continue to pursue appropriate cost out initiatives and are exploring and implementing initiatives to attract customers to our properties. We are committed to pursuing a transparent, practical and sustainable pathway that ensures our remediation plan is delivered to the standard expected, while supporting consistency, embedment and demonstrable maturity across the group.
“We have immense potential in our properties, and we are committed to transforming The Star into premier entertainment destinations.”
H1 FY26 results
The Star reported normalised net revenue of AUS$585m (€353m) for H1 FY26, down 10% year-on-year (H1 FY25: $650m).
Overall revenue decline was due to an 18% gaming revenue drop YoY, impacted by trading conditions and market share loss, in addition to the Treasury Brisbane casino’s closure in August 2024, with such revenues now recognised as equity accounted profit/loss.
Excluding Treasury Brisbane, gaming revenue dropped 9% due to a decline in table games revenue following the implementation of mandatory carded play and cash limits at The Star Sydney.
Sydney, Gold Coast and Treasury Brisbane saw their revenues decline to $323.8m (down 10.6%), $212.3m (down 2.7%) and $8.6m (down 84.3%). The operator also had a The Star Brisbane operator fee revenue of $40.2m.
EBITDA was a $7.6m loss before significant items. As of 31 December 2025, The Star had $130m available cash.
Outlook
In February, The Star reached a provisional agreement with WhiteHawk Capital Partners for a proposed refinancing of the group’s debt.
A waiver of the 31 December 2025 covenant tests under the senior facility agreement has also been received and so a refinancing commitment letter must be delivered by 31 March and executed by 15 May 2026 to avoid a default.
Negotiations are still ongoing with Chow Tai Fook Enterprises Limited and Far East Consortium International Limited to exit the Destination Brisbane Consortium Integrated Resort joint venture, as well as disposing of its Festival Car park joint venture interest, the Treasury Hotel and Car Park and consolidate its Gold Coast position.
While uncertainty remains for The Star post-Bally’s deal, the operator has stated that quarter-on-quarter volumes have stabilised. Soft trading conditions at The Star Sydney remain, with January trading down 6% YoY, but Gold Coast January revenue remained stable.
