Australia’s Star Entertainment Group has reported another quarterly loss as the embattled casino operator continues to navigate strict regulations, escalating compliance costs and an ongoing restructuring program. The business remains under pressure, but the September quarter showed early signs of stabilisation across important properties. Management pointed to improved trading momentum and seasonally stronger performance in Queensland.
The company posted revenue of AU$284 million for the three months ending 30 September 2025. This is up 5% compared with the June quarter, but still 19% lower than the same period last year. The group’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) loss reduced to AU$13 million, an improvement from the AU27 million loss for the June quarter.
Trading at The Star Sydney remained at “historically low levels”, the company said, although performance stabilised over the period.
Star noted that the gambling market continues to shift due to the competition from online platforms and changing player behaviours. This includes the growing popularity of Australian online casino platforms, which offer unparalleled convenience and vast game libraries. This comes at a time when the company maintains a strong focus on land-based operations. However, it acknowledges external competitive pressures.
The Star Sydney generated AU$161 million in revenue for the quarter, flat on the prior period but 14% lower year-on-year. EBITDA loss improved to AU$10 million, compared to the AU$14 million of the previous quarter. Queensland operations benefited from seasonal activity, with The Star Gold Coast reporting a 9% quarter-on-quarter increase in revenue of AU$105 million and an EBITDA profit of AU$6 million.
Brisbane contributed AU$14 million in operator-fee revenue. This is an increase from AU$8 million recorded three months prior. However, the Brisbane business recorded an EBITDA loss of AU$9 million as the city’s new integrated resort continues its ramp-up phase and the planned exit from the Destination Brisbane Consortium.
Star ended September with AU$168 million in cash, down from AU$234 million on 30 June. This is after an AU$61 million repayment on a senior credit facility. The company has since received the final AU$67 million tranche of the AU$300 million strategic investment from Bally’s Corporation and Investment Holdings Pty Ltd, although completion remains subject to regulatory approval.
The company highlighted “material uncertainties” related to its ability to continue as a concern, citing dependence on lenders and the timing of a pending AUSTRAC penalty over past anti-money laundering failures. Senior lenders granted covenant waivers for the September quarter, but further waivers or refinancing will be required from December to avoid a potential default situation.
Regulatory oversight remains tight, with the NSW Independent Casino Commission extending the external manager’s appointment at The Star Sydney until March 2026. Similar management arrangements in Queensland have been extended to September 2026.
The company stated that while “operating conditions remain challenging”, stabilised trading anf restructuring provide grounds for optimism as Star works to restore investor confidence and rebuild its financial situation.
