The Star Entertainment Posts $270M Q4 Revenue, $27M EBITDA Loss, Secures $233M Investment
The Star Entertainment Group reported steady Q4 FY25 revenue of $270 million but widened its EBITDA loss to $27 million, reflecting ongoing regulatory pressures and operational challenges. The company secured $233 million from strategic investors Bally’s Corporation and Investment Holdings, while negotiations continue over its Brisbane joint venture exit.
- Q4 FY25 revenue steady at $270 million, EBITDA loss widens to $27 million
- Strategic investment of $300 million agreed with Bally’s and Investment Holdings, $233 million received
- Sale of Sydney Event Centre completed for $60 million, proceeds released from escrow
- Ongoing regulatory challenges with suspended casino licenses in Sydney and Gold Coast
- Negotiations continue on exit from Destination Brisbane Consortium, with repayment risks if unresolved
Financial Performance and Operational Context
The Star Entertainment Group closed Q4 FY25 with revenue holding steady at $270 million, consistent with the previous quarter. However, the company’s EBITDA loss widened slightly to $27 million before significant items, reflecting persistent headwinds from regulatory changes and a challenging operating environment. Notably, mandatory carded play and cash limits introduced in New South Wales have dampened gaming revenues, with average daily revenue at The Star Sydney declining 17% since full implementation in October 2024.
The Star Gold Coast and Brisbane properties showed mixed results. The Gold Coast saw a modest 6% decline in gaming revenue, offset by hospitality growth, while The Star Brisbane, which opened in stages from August 2024, reported an operator fee revenue of $8 million but an EBITDA loss of $15 million. The Treasury Brisbane Casino closure in August 2024 shifted earnings recognition to The Star Brisbane operations.
Strategic Capital Injection and Asset Sales
In April 2025, The Star secured a significant strategic investment totaling $300 million through a convertible note and subordinated debt arrangement with Bally’s Corporation and its largest shareholder, Investment Holdings Pty Ltd. To date, $233 million has been received, with a further $67 million contingent on regulatory approvals, including Foreign Investment Review Board clearance, which Bally’s recently obtained.
Simultaneously, The Star completed the sale of the Sydney Event Centre for $60 million, with proceeds initially held in escrow pending shareholder approval of the strategic investments. Following shareholder endorsement in June 2025, the $58 million escrowed funds were released, bolstering the company’s liquidity position.
Joint Venture Negotiations and Regulatory Challenges
The Star’s ongoing negotiations to exit the Destination Brisbane Consortium (DBC) remain uncertain. After joint venture partners issued a termination notice for the binding heads of agreement in June 2025, the parties agreed to extend negotiations to 31 July 2025. However, The Star has indicated it is unlikely that definitive agreements will be finalised by this deadline, potentially triggering repayment obligations of approximately $10 million and reimbursements for equity contributions made by partners since March 2025.
Regulatory scrutiny continues to weigh on The Star’s operations. Casino licenses for The Star Sydney and Gold Coast remain suspended, with submissions on suitability due to regulators by July and August 2025. The Star Brisbane operates under a new license issued in August 2024, but an external adviser remains appointed to oversee operations until at least September 2025.
Liquidity and Cost Management
The Group’s liquidity improved markedly, with available cash rising to $234 million at quarter-end, up from $44 million in March 2025, supported by strategic investment inflows and asset sale proceeds. The Star has also achieved $100 million in annualised corporate cost savings during FY25 and is pursuing further efficiencies. Senior lenders have granted covenant waivers through June 2025, and the Group’s debt facilities are secured primarily against Gold Coast assets.
Despite these positive steps, The Star’s ability to continue as a going concern remains contingent on regulatory approvals, successful joint venture negotiations, and ongoing operational performance. The company plans to disclose significant items impacting EBITDA in its forthcoming FY25 results announcement.
Bottom Line?
As The Star navigates regulatory hurdles and JV complexities, investors will watch closely for FY25 results and the final tranche of strategic funding.
Questions in the middle?
- Will The Star secure regulatory approvals needed to access the remaining $67 million of strategic investment?
- How will unresolved Destination Brisbane Consortium negotiations impact The Star’s financial position?
- What are the implications of ongoing casino license suspensions for The Star’s long-term operations?
