Australia’s Star Entertainment Group returned to EBITDA profit in the three months to 31 December 2025 – the first time it has achieved a positive EBITDA result in two years.
In a filing in which it also outlined the details of an ongoing refinancing process and the latest on disposing of its stake in The Star Brisbane, Star revealed a 6% improvement in total revenue compared with the September 2025 quarter to AU$301 million (US$210 million), while an AU$6 million (US$4.2 million) EBITDA profit reversed the AU$13 million (US$9.1 million) loss recorded three months earlier.
This, the company explained, was mainly due to seasonal strength at The Star Gold Coast and a higher operator fee in Brisbane. Trading at The Star Sydney stabilized, it added, but remains challenged and at historical lows on the impact of mandatory carded play and cash limits.
On the proposed sale of its 50% stake in Destination Brisbane Consortium to its Hong Kong Partners Chow Tai Fook and Far East Consortium – who currently each hold 25% – Star noted that the sunset date in relation to the first stage of the transaction expired on 30 November, meaning it can now be terminated at any time by either party. However, Star explained that it deems completion of the disposal to have reached a “highly probable status” in December given progress on material conditions precedent to the transaction.
Likewise, Star said it is confident of completing refinancing under its new ownership by Bally’s Corp and Investment Holdings Corp, who took control of a combined 61% stake in the group in November.
While Star revealed it has not requested a waiver from its existing Senior Facility Agreement lenders of financial covenants for 31 December 2025 – some of which are not expected to be met – the company said it is conducting a refinancing process and engaging with existing and potential new lenders in advance of 14 February 2026. This is the date upon which it is required to deliver a compliance certificate setting out calculations with respect to applicable financial covenants under the Senior Facility Agreement for the year ended 31 December 2025.
“Pursuant to the terms of the Senior Facility Agreement, if there is a suitable commitment letter in relation to refinancing the Senior Facility Agreement when the December Compliance Certificate is provided, any breach of the Senior Facility Agreement which would have otherwise arisen as a result of non-compliance with financial covenants disclosed in the Certificate will be deferred, provided that such refinancing is completed on or before 31 March 2026,” Star said.
Despite its progress on these key matters, Star noted that its survival still depends on the ability execute on all plus the “quantum and timing of the AUSTRAC judgment which remains outstanding” in the Federal Court.
Fellow Australian casino operator Crown Resorts previously reached an AU$450 million (US$313 million) settlement with AUSTRAC for similar breaches of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
In Friday’s filing, Star said it had available cash of AU$130 million as of 31 December 2025.
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