Star Entertainment Group has reported losses of A$471.5 million for the financial year ending June 30, with revenue declining by 29% year-on-year.
The Australian casino operator has faced a challenging 12 months in which it has been embroiled in a complicated on-off-on attempt to sell off its 50% stake in Brisbane’s Queen’s Wharf development.
In the firm’s media release and trading update for FY25, the summary even goes so far as to state: “There remains material uncertainty regarding the Group’s ability to continue as a going concern.”
Group chief executive and managing director Steve McCann said: “Our announcement today highlights a number of key interdependencies that are critical to the Group’s future.
“The Group continues to require significant support from a range of its stakeholders including governments, regulators, lenders and investors.
“Without that support it will be difficult to navigate the various challenges facing the Group and to create a sustainable future for the business.”
Gaming revenue Down By 37%
Several factors were cited for group revenue’s 29% drop to A$1.18 billion, including the fact that gaming revenue plummeted 37% year-on-year.
Star had been operating three luxury resort destinations in Australia, The Star Brisbane, The Star Gold Coast and The Star Sydney, with casino, poker and table games, though it’s business didn’t extend to online casino gaming.
The prolonged sale of it’s 50% interest in the Destination Brisbane Consortium, which includes its Brisbane casino, is still ongoing.
It’s joint venture partners Chow Tai Fook Enterprises and Far East Consortium International agreed to a A$53 million acquisition but have already paid A$45 million.
The two Hong Kong-based firms should complete the transaction by the November 30 deadline, at which time Star will receive the balance of A$8 million.
Star reported that excluding the Treasury Brisbane Casino closure, the drop in gaming revenue was reduced to 22% and that overall operating expenses were down 10%.
It also stated that various regulatory reforms, plus some ongoing remediation costs, loss of market share and the withdrawal from the Brisbane casino operation had all played a part in affecting FY25’s performance.
Group CEO And MD Steve McCann
In June, Star received a A$300 million cash injection from Bally’s, the US retail and online casino specialists, in partnership with Australian firm Investment Holdings.
McCann acknowledged that Star has relied on such backing to help keep the operation functioning.
“While there remains work to be done, I note the significant progress that the Group has made on its remediation journey to date and the implementation of regulatory reforms,” he said.
“The Group has sourced additional funding to enable The Star to continue to provide thousands of jobs and support tourism and entertainment in the markets in which we operate.
“Our announcement today highlights a number of key interdependencies that are critical to the Group’s future.
“The Group continues to require significant support from a range of its stakeholders including governments, regulators, lenders and investors.
“Without that support it will be difficult to navigate the various challenges facing the Group and to create a sustainable future for the business.”
