Star Entertainment Announces Losses in Third Quarter

Earlier this week, the Star Entertainment Group explained it had swung to an operating loss in the third quarter, which ended on March 31.

Star Entertainment Announces Concerning Trends

The company posted a loss of A$21 million ($13.41 million) in earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding significant items, compared to an EBITDA profit of A$38 million in the previous year. Quarterly revenues, excluding significant items, decreased by 35%, dropping to A$271 million from the same period last year. Operating expenses declined by 3% from the previous quarter, driven by reduced corporate costs and volume-related savings.

Star Entertainment blamed its struggles on seasonal downturns, a decline in casino visitors, and the impact of Queensland property closures following March storms, which hurt the struggling Australian gambling operator. The company cautioned that “material uncertainty” remains around its ability to continue operating as a going concern, emphasizing the need for several key initiatives to strengthen its liquidity. Earlier this month, Star Entertainment secured a A$300 million (about $191.5 million) rescue deal from US-based Bally’s and the Mathieson family, its largest shareholder.

Speaking of shares, the company’s actually rose 2.4% to A$0.1075 by 0046 GMT, outperforming a 0.2% rise in the broader benchmark index. In June, shareholders will vote on a portion of Bally’s investment that would grant the U.S. casino group a controlling 56.7% stake in Star. According to the company, Star stated that finalizing this strategic investment is vital to its survival and ranks among its top near-term priorities.

More About Star Entertainment

The Star Entertainment Group, listed on the ASX, is one of Australia’s premier integrated resort operators. It owns and manages The Star Sydney, The Star Gold Coast, and The Star Brisbane, employing more than 8.000 people across the three properties. It also oversees the Gold Coast Convention and Exhibition Centre on behalf of the Queensland Government.

Aside its core tourism, hospitality, and gaming businesses, The Star has invested heavily in multi-billion-dollar transformation projects in New South Wales and Queensland, including Queen’s Wharf Brisbane and The Star Gold Coast Masterplan, which feature new hotels, expanded accommodation options, and world-class tourism infrastructure.