Star Entertainment Group has reported a net EBITDA loss of AU$18 million ($12 million) for the quarter ending September 30, reflecting a difficult three-month period marked by rising regulatory costs, operational changes, and limited initial earnings from its new AU$3.6 billion (US$2.4 billion) integrated resort, The Star Brisbane.
Opened on August 29, the Brisbane property generated AU$45.9 million ($30 million) in revenue within its first month, though Star’s share as an operator amounted to AU$4 million. The project, a joint venture with Chow Tai Fook and Far East Consortium, forms part of Star's strategic expansion but contributed minimally to the group’s earnings this quarter.
The company experienced an 18% decline in overall revenue, reaching AU$351 million ($230 million) for the quarter, impacted by slower business across its properties and new regulatory compliance costs.
The Star Sydney reported a 16% revenue drop, with performance challenged by both technical issues in July and regulatory shifts such as mandatory carded play and cash limits implemented in August, which contributed to further declines.
Star reported that in the 50 days before the new cash and card regulations, Sydney’s revenues were already trailing behind the previous fiscal average by 11% and declined an additional 12% post-implementation. Sydney’s electronic gaming operations were especially impacted by competitive pressure from other venues, indicating a further struggle to retain market share.
In contrast, Star’s Gold Coast property fared better with revenues stabilizing at AU$108 million ($71 million) and achieving an AU$7 million ($4.6 million) EBITDA gain. The property, which has not yet implemented the full carded play and cash limits, showed resilience, with management attributing a seasonal uplift for the revenue stability, although the base remains lower than previous periods.
Amid ongoing revenue pressures, Star reported AU$149 million ($98 million) in available cash at the end of September, bolstered by the recent AU$60.5 million ($40 million) sale of its Treasury Brisbane building. This sale has provided Star with a degree of financial flexibility as it negotiates an additional AU$200 million ($131 million) debt facility to support its strategic and operational priorities.
