The new management team of Australia’s Star Entertainment Group says it will focus the group’s energies on cutting costs and driving revenue growth through “customer-focused enhancements and initiatives” as it looks to bring the company back from the brink.
The update formed part of Star’s interim results announcement for the six months to 31 December 2025, which saw it fall to a net loss of AU$109.7 million (US$78.1 million) on a 10.0% year-on-year decline in net revenue to AU$584.9 million (US$416 million). Gaming revenue declined by 17.7% to AU$382.0 million (US$272 million) – offsetting a 9.3% improvement in non-gaming to AU$202.9 million (US$144 million).
However, EBITDA loss narrowed significantly to AU$7.6 million (US$5.4 million). Star said the net loss for the period was impacted by AU$34.0 million (US$24.2 million) in significant items.
Star’s shareholders in November votes in favor of a combined AU$300 million (US$213 million) rescue package that has seen US casino operator Bally’s Corp assume a 38% stake and Investment Holdings Pty Ltd a 23% interest. Since then, Bally’s Corp chair Soo Kim has been named Star’s new Chairman and Investment Holdings’ Bruce Mathieson Jr the new Group CEO and Managing Director.
The refreshed leadership team has already flagged its intention to cut back the size of the corporate office and last week reached a provisional agreement for refinancing of the whole group.
In releasing its 1H26 results on Friday, Star also revealed that it has now received a waiver of its 31 December 2025 covenant tests under its Senior Facility Agreement (SFA) but must now deliver a refinancing commitment letter by 31 March 2026 and execute a refinancing of the SFA by 15 May 2026 to avoid a default.
Liquidity remains a key priority, Star explained, including management of existing debt facilities and refinance alternatives.
The company added that, in consultation with its major shareholders and by leveraging their expertise, it has been reviewing the resourcing structure and strategy of Star’s operations and has commenced a process of restructuring the Group’s operations and marketing strategy.
“Our corporate office is being streamlined and essential support functions will be managed at the property level in Sydney, Gold Coast and Brisbane,” said Mathieson Jnr. “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.”
Star’s 1H26 results included a 10.6% year-on-year decline in net revenue at The Star Sydney to AU$323.8 million (US$230 million) – largely on lower table games revenue – with an EBITDA loss of AU$17.9 million (US$12.7 million).
At The Star Gold Coast, net revenue fell 2.7% to AU$212.3 million (US$151 million) with an EBITDA gain of AU$15.2 million (US$10.8 million). Star also reported operator fee revenue of AU$40.2 million (US$28.6 million) for its management of The Star Brisbane under its agreement with Destination Brisbane Consortium (DBC) – of which it holds a 50% stake.
The company confirmed that it is still working to settle an agreement with its joint venture partners to exit DBC.
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