Star Entertainment posts $472m full-year loss amid liquidity struggles
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The news: Star Entertainment has delivered a $472 million unaudited loss for FY25 as the company battled to stay liquid under the impact of regulatory changes, implementation of The Star’s remediation program and loss of market share.
The casino operator also announced that former ALH Group CEO Bruce Mathieson Jr has been appointed as a non-executive director as a nominee of Investment Holdings, subject to regulatory and ministerial approvals.
From 1 September, Mathieson will start acting as an observer to the board pending the approvals.
The numbers: The statutory net loss after tax was a smaller loss than the $1.69 billion loss posted in FY24 when it faced a $1.44 billion impairment.
EBITDA loss before significant items for FY25 came in at a $77 million, compared to a $175 million gain in FY24. Net revenue came in at $1.19 billion, which was 29.2% lower than $1.68 billion posted in FY24.
The context: The Star said that while overall trading performance deteriorated in FY25, activity in the second half stabilised, with revenue broadly consistent across quarters three and four, though at "depressed levels".
The group noted that soft trading conditions continued during July, particularly at its Sydney casino. It said there remains "material uncertainty" regarding its ability to continue as a going concern.
Earlier this month, the casino operator secured an agreement to sell its 50% stake in the Queen's Wharf casino and entertainment complex in Brisbane to joint venture partners Chow Tai Fook Enterprises and Far East Consortium, following months of discussions. Under the agreement, The Star will receive $53 million in cash, of which $45 million was paid in March.
What they said: "The group continues to require significant support from a range of its stakeholders including governments, regulators, lenders and investors," said group CEO and managing director Steve McCann.
"Without that support it will be difficult to navigate the various challenges facing the group and to create a sustainable future for the business."
