According to its delayed 1H25 financial report released today (15 April), Star’s revenue ed a year-on-year drop of 25% to A$650m, driven by a sharp 32% decline in domestic gaming revenue to A$464m.
Non-gaming revenue provided a modest counterbalance, increasing by 1.8% to A$185.6m.
The group also recorded an EBITDA decline of A$26m. This offset an EBITDA increase of A$61m in the first half of the fiscal year.
The report was released well over a month past schedule following Star’s confirmation last week of a much-needed A$300m financial injection from Bally’s Corporation, and local investor Bruce Mathieson and his company, Investment Holdings Pty Ltd.
Star received the first A$100m tranche from Bally’s on 9 April, improving the company’s immediate liquidity position.
The company’s financial and operational troubles have continued into 2025. In the March quarter, overall revenue showed a quarter-on-quarter decline of 9% to A$271m, while adjusted EBITDA slipped to a loss of A$21m.
This represents a deterioration from the A$8m loss recorded in the previous quarter and a significant reversal from the A$38m EBITDA improvement in the March quarter of last year.
The Star Gold Coast recorded a 13% decline in sequential revenue to A$96m, also representing a year-on-year drop of 17%. Operations were disrupted by Tropical Cyclone Alfred, which forced a temporary closure in March.
The Star Sydney fared no better, reporting a quarter-on-quarter revenue drop of 8%, as well as a year-on-year decline of 26% to A$161m.
A collision of hurdles
The ongoing investigations into Star, coupled with hundreds of millions of dollars in penalties and fines, are not helping the company in its mission to gain a solid footing.
The results also reflect the significant impact of regulatory reforms, especially the recent introduction of mandatory carded play, cash restrictions, and stricter customer due diligence protocols.
The company has cited these reforms, along with intensifying competition from pubs and clubs not subject to similar requirements, as key reasons for its substantial market share loss.
Despite the downturn, Star remains cautiously optimistic.
CEO and managing director Steve McCann emphasised the potential for recovery, ed by the Bally’s investment and the company’s agreement to divest its stake in The Star Brisbane to partners Chow Tai Fook and Far East Consortium.In return, Star will gain full control of The Star Gold Coast’s Andaz and Dorsett hotel towers.
Speaking to investors, McCann argued that Star’s recent losses are largely due to an uneven competitive landscape rather than systemic industry decline.
He pointed out that while Star’s gaming revenues have dropped, broader sector data show record highs in gaming machine revenues for New South Wales and Queensland in 2024.
Pubs and clubs in NSW alone generated A$8.64bn, while Queensland venues brought in A$3.53bn, suggesting that players are shifting their activity rather than exiting the market.
McCann: Pubs and clubs have advantage
McCann asserted that implementing consistent responsible gambling measures across all gaming venues, not just casinos, could help level the playing field.
He emphasised that Star’s decline in customer numbers is more reflective of competitive displacement rather than a shrinking gambling market.
McCann added that the company is working closely with regulators and state governments to establish a more uniform regulatory environment, although this effort is likely to span several years.
Star is also focusing on improving its customer experience, which has reportedly suffered due to the abrupt rollout of new regulatory measures.
The company acknowledged that poor communication and sudden enforcement of play restrictions had driven patrons to seek alternative venues.
Initiatives are underway to repair customer relationships and encourage re-engagement.
Additionally, Star is exploring ways to strengthen its non-gaming offerings.
This includes leasing out certain food and beverage spaces to third parties to increase foot traffic and diversify revenue streams.
The aim is to enhance the overall atmosphere and attractiveness of its Sydney and Gold Coast properties.
As of 11 April, Star reported A$98m in available cash, boosted by the initial investment from Bally’s.
This liquidity buffer, coupled with asset divestments and operational recalibration, forms the cornerstone of Star’s bid to navigate its financial headwinds and reclaim its position in Australia’s competitive gaming landscape.
