The Star posts modest quarterly improvement as refinancing deadline nears

The Star Entertainment Group has reported a modest improvement in trading for the quarter ending 31 December 2025, posting revenue of AU$301m (US$198m), up 6% from the previous quarter. EBITDA reached a profit of AU$6m, compared with a loss of AU$13m in Q1. Results exclude significant items, which will be detailed in the FY26 half year report.

The quarter marked the company’s first full reporting period since the Bally’s Corporation–Mathieson family takeover consolidated effective control of The Star, following completion of a combined AU$300m strategic investment. Bally’s now holds approximately 38%, while Investment Holdings, representing the Mathieson interest, holds around 23%. With its expanded stake, Bally’s is now positioned as the company’s largest and most influential shareholder, reshaping the board and executive leadership.

The operator said the quarter reflected stabilised but subdued trading in Sydney, stronger seasonal volumes on the Gold Coast and a higher operator fee contribution from The Star Brisbane. Mandatory carded play and cash limits in New South Wales, along with stricter regulatory requirements across all properties, continued to pressure performance.

Sydney revenue edged slightly higher to AU$163m, although table game volumes remained weak. Since full implementation of carded play and AU$5,000 daily cash limits in October 2024, average daily revenue has fallen 19%. Gold Coast revenue increased 3% to AU$108m, supported by growth across both table and electronic gaming.

The quarter also captured the impact of the JVP Transaction relating to The Star Brisbane, with operator fee revenue of AU$26m, including a true-up of previously unrecognised amounts.

Despite the uplift, The Star reiterated that material uncertainties continue to affect its ability to operate as a going concern. The company must submit a compliance certificate to lenders by 14 February 2026 and is engaged in an active refinancing process. Several financial covenants are not expected to be met unless refinancing commitments are secured.

Further uncertainty stems from the outstanding AUSTRAC judgment and the extended maturity of DBC’s debt facilities, now due on 31 March 2026. The Star said it remains in close engagement with regulators, lenders and government as it works through ongoing capital, operational and governance reforms.