Citing further deterioration of trading conditions in the first half of the financial year, The Star revealed a statutory net loss of $302 million for July to December 2024, which included a $216 million decline in revenue compared to the same period in 2023, due to changes is casino operation and loss of market share.
While overall revenue was down 25 per cent, non-gaming revenue, which includes The Star’s hotels and events offerings, was down just two per cent.
The Star says its revenue continued to drop between January and March this year, down by another nine per cent. It also noted that The Star Gold Coast’s five-day closure due to Tropical Cyclone Alfred had an impact on revenue.
As part of today’s results announcement and trading update, The Star confirmed it had $98 million in cash on April 11, after receiving $100 million from Bally’s on April 9.
Another $200 million as part of the Bally’s deal, which also includes $100 million from the Australian Investment Holdings, is contingent on shareholder approval at a meeting The Star says will be held in June.
The Star also has around $58 million held in escrow from the sale of its Sydney Event Centre to Foundation Theatres, which will be held until shareholder approval of the Bally’s deal is obtained.
Other than that, The Star has $8 million outstanding in its favour from its agreement to exit the Queen’s Wharf development in Brisbane. As part of that deal with its co-investors, Chow Tai Fook Enterprises and Far East Consortium, it will continue to operate The Star Brisbane at the precinct until at least March 2026.
As it has throughout this year, The Star warned again today about the uncertainty around its capacity to continue operating, as it works to create a better cash position.
