Star Entertainment Group Sees Revenue Dip but Losses Reduce

(AsiaGameHub) –   The Star Entertainment Group recorded revenue of A$266 million for the quarter ending March 31, a drop from the prior quarter’s A$301 million and marginally below the A$268 million reported in the same period last year. Even so, the company’s losses narrowed: its EBITDA stood at a negative A$1 million, versus a A$24 million loss in the year-ago quarter.

Revenue has fallen across all three of Star Australia’s locations, driven by mandatory cash limits introduced in October 2023 and a requirement for carded gaming. Additionally, the Sydney site is underperforming—its revenue was A$147 million lower than both the prior quarter and the same period last year. Over the quarter, the Sydney location posted an EBITDA operating loss of A$4 million, though this marks an improvement from earlier quarters.

At the Gold Coast site, Star earned A$101 million in revenue, seeing a comparable seasonal decrease from the prior quarter, but performance was better than the same period last year—when cyclone-related bad weather impacted results. The site’s A$8 million EBITDA was boosted by electronic gaming and hospitality segments.

Brisbane’s revenue and EBITDA—A$15 million and A$4 million respectively—were both affected by the group’s partial withdrawal from a joint venture. The new structure, though, will feature an annual fixed cost of A$18 million plus performance-based earnings.

Total operating expenses (Opex) decreased from A$230 million to A$206 million, thanks to cost-cutting measures including corporate expense reductions and renegotiated supplier agreements. Further cost-saving initiatives are currently being rolled out.

Cash reserves dropped from A$130 million to A$90 million over the quarter. The group is currently working on a A$550 million refinancing deal with WhiteHawk Capital Partners, which is anticipated to be finalized before May.