Key points:
- The Star Entertainment reported a year-on-year decline in revenue of 24.9%
- Statutory NPAT fell from AU$9m to a loss of AU$302m
- Earlier this month, Bally's confirmed an investment of AU$300m in the operator
The Star Entertainment has released its financial results for the first half of its 2025 financial year, for the period ending 31 December 2024.
Normalised revenue came to AU$650m (US$413.2m), down 24.9% year-on-year. Unsurprisingly, this trend of decline was seen across the board, with many metrics falling into a loss compared to last year.
EBITDA fell from AU$114m to a loss of AU$26m, while EBIT dropped from AU$51m to a loss of AU$57m. Normalised net profit after tax (NPAT) was down by over AU$150m, from AU$25m in H1 2024 to a net loss of AU$136m in H1 2025. However, it is in statutory NPAT where this dip is most prevalent, from AU$9m in H1 2024 to a net loss of AU$302m in H1 2025.
Indeed, according to the results, domestic gaming revenue was down 32%; excluding the closure of Treasury Brisbane Casino, domestic gaming revenue was still down 20%. While the closure of Treasury Brisbane aided in The Star Entertainment dropping its operating expenses by 4% (to AU$522m), net finance costs were still up, increasing by 6% year-on-year, in part due to financial costs relating to its debt facility.
Debt refinancing costs, fines, penalties and legal costs all played a part in The Star Entertainment’s $166m (after tax) in significant items, which when added to the operator’s normalised NPAT, results in its AU$302m statuary net loss total. This is a significant increase from last year, when H1 2024 significant item costs came to $16m; an increase of AU$150m, or over 900%.
Good to know: During the period, The Star Entertainment was also able to secure funding from Singaporean high roller Yew Choy Wong, who owed the operator AU$38m in gambling debt.
Trading update and liquidity
Following the challenges of this period, the year so far has seen The Star enter headlines several times for its work in securing financial aid.
Since January 2025, the operator has divested The Star Sydney Event Centre and its assets to Foundation Theatres for AU$60m. It later received a debt refinancing proposal from Oaktree for AU$650m, and in March a AU$940m proposal from Salter Brothers – a proposal that was withdrawn at the beginning of April, after the operator concluded that certain conditions set by the lenders could not be met.
It was announced a week later that Bally’s would purchase a 51% controlling stake in The Star Entertaiment for AU$300m, with Bally’s to invest AU$200m and Investment Holdings to invest AU$100m. On 9 April, AU$100m was received.
The operator also finalised the sale of The Star Sydney Event Centre the same week.
Now, the operator’s available cash totals AU$98m. However, the operator stated in its report that ‘there remains material uncertainty regarding the Group’s ability to continue as a going concern,’ though highlighted the Bally’s investment and other strategies as key for its outlook.
