The Star posts H1 FY26 loss as revenue falls 10% amid restructuring

The Star Entertainment Group has reported a statutory net loss of $109.7m for the half year ended 31 December 2025. The downturn was driven by regulatory reforms, weaker gaming results and the continuing restructuring of the business.

The group recorded normalised revenue of $584.9m and a normalised EBITDA loss of $7.6m before significant items.

The period reflected a substantial decline in gaming revenue, which fell 18% due to challenging market conditions and the loss of contribution from the Treasury Brisbane Casino that closed in August 2024. Excluding the closure, gaming revenue declined 9%, driven largely by weaker table games performance.

The group continued to bear higher funding costs, with net finance expenses rising by $18m due to increased debt balances, higher rates on bank loans and interest related to the $300m strategic investment from Ballys and Investment Holdings.

Significant items of $34m after tax included reorganisation costs, debt refinancing costs, expenses related to the joint venture restructure and regulatory penalties.

Liquidity remains a key focus. The group reported $130m in available cash and completed a $61m prepayment on its senior facility during the period.

A term sheet has been executed with WhiteHawk Capital Partners for a refinancing proposal, although discussions remain non-binding and subject to conditions. The Star must secure a refinancing commitment by 31 March 2026 and complete the refinancing by 15 May 2026 to meet lender requirements.

Group CEO and Managing Director Bruce Mathieson Jnr said: “Our corporate office is being streamlined, and essential support functions will be managed at the property level in Sydney, Gold Coast and Brisbane. To support long-term success, these changes will strengthen our financial position. We continue to pursue appropriate cost out initiatives and are exploring and implementing initiatives to attract customers to our properties. We are committed to pursuing a transparent, practical and sustainable pathway that ensures our remediation plan is delivered to the standard expected, while supporting consistency, embedment and demonstrable maturity across the Group. We have immense potential in our properties, and we are committed to transforming The Star into premier entertainment destinations.”