Star Entertainment's Q4 Performance Maintains Sluggishness, Bolstered by Assistance from Bally Corporation
The Star Entertainment Group's Q4 2025 Financial Performance: Challenges Persist Despite Bally's Investment
The Star Entertainment Group Limited, a leading casino operator in Australia, reported its Q4 2025 financial results, showing continued softness and challenges despite a significant AUD 300 million investment from Bally's Corporation.
The company's revenue for Q4 2025 stood at AUD 270 million (approx. USD 175 million), a slight increase from the prior year. However, the EBITDA loss worsened, reaching AUD 27 million (USD 17.5 million), compared to the prior year's EBITDA loss of AUD 24 million.
Breaking down key properties: - The Star Sydney, one of the company's flagship properties, reported a slight revenue increase to AUD 162 million (USD 105 million), but its EBITDA loss increased to AUD 14 million (USD 9 million). - The Star Gold Coast reported stable revenue of AUD 96 million (USD 62.2 million) and achieved a small EBITDA gain of AUD 2 million (USD 1.3 million). - The Star Brisbane’s operator fee revenue increased slightly to AUD 8 million (USD 5.2 million), with a narrowed EBITDA loss of AUD 15 million (USD 9.7 million). Treasury Brisbane, another property under The Star Entertainment Group, reported revenue of AUD 4 million (USD 2.6 million) with EBITDA near break-even.
Despite Bally’s strategic investment, which includes convertible notes and subordinated debt potentially leading to Bally’s ownership around 56.7%, The Star continues to face ongoing operational softness.
On a positive note, The Star Gold Coast reported stable revenue and a small EBITDA gain, while The Star Brisbane's EBITDA loss narrowed. However, The Star Sydney property reported an increased EBITDA loss.
The Star also provided an update on its negotiations with its joint venture partners regarding the sale of its interest in the Destination Brisbane Consortium. The joint venture partners agreed to extend the deadline of the agreement.
The company's cash position as of June 30, 2025, was AUD 234 million. Bally's investment in The Star Entertainment Group Limited was approved in a general meeting.
The licenses of The Star Sydney and The Star Gold Coast were suspended, with the special manager's term extended to September 30, 2025. The Star Brisbane successfully secured a license and commenced operation on August 29, 2024, and the term of the property's external adviser was recently extended to September 30.
Similar measures are being considered by the Queensland Government and may affect both The Star Gold Coast and The Star Brisbane. The Star Sydney property's cash limits have been reduced to AUD 1,000, and mandatory carded play and AUD 5,000 cash limits have been implemented across The Star Sydney.
In summary, Bally's investment provided capital support but has not yet translated into a turnaround or significantly improved EBITDA performance for The Star as of Q4 2025. The company continues to experience operational softness and losses at key properties despite stable revenues in some segments.
The strategic investment from Bally's Corporation, worth AUD 300 million, has not significantly improved The Star Entertainment Group's EBITDA performance in Q4 2025, as the EBITDA loss worsened to AUD 27 million.
In the midst of challenges, The Star Gold Coast reported stable revenue and a small EBITDA gain, indicating a positive trend within the finance and business sectors of the company.
