Tough times intensified for Star Entertainment Group in Q2 as the casino giant’s revenues tumbled, with it widely considered to be on the brink of collapse.
According to a stock market update on Monday, during the the second quarter of FY25, the group reported a decline of 15% to $299 million in revenue, along with a precarious cash position. As of 31 December 2024, it had available cash of just $78 million — down $107 million on the previous quarter.
The dramatic decline has raised concerns that the company will go into administration, risking thousands of jobs and the future of the new Queen’s Wharf precinct – once touted a “gamechanger” for both the city and the group – in the process.
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“The results for the period reflect continued weakness in the operating performance of the Group due to the ongoing challenging consumer environment, the impact of mandatory carded play and cash limits in NSW, and costs associated with ongoing remediation activities,” the company said in a statement.
Under a NSW Government clampdown on the gaming industry, The Star Sydney was ordered to implement cashless player cards for all gaming conducted at the casino from 19 August 2024.
It also incurred a $15 million penalty for compliance breaches from the New South Wales Independent Casino Commission in October last year, with the first instalment of $5 million paid in December 2024.
The closure of Treasure Brisbane Casino was cited as another factor in the Q2 downturn, with Star Entertainment Group closing its doors last August as it prepared for the phased opening of its new mega gaming, hospitality and retail precinct at nearby Queen’s Wharf.
During the quarter, the company plunged $36 million in equity contributions into the Queen’s Wharf project.
Despite all this, Star showed some resilience. Its EBITDA loss stood at $8 million for the quarter – an improvement on the $18 million loss reported in the previous quarter – aided by stronger revenue in December 2024 and the effects of a cost-reduction program. Operating expenses decreased by 18% on Q1 – a saving of $52 million.
Meanwhile, The Star Gold Coast saw growth in revenue (up 3%) and earnings before tax, partially offsetting the decline.
