The Star Entertainment revenue drops 15% from previous quarter as uncertainty looms

The Australian gambling company ‘The Star Entertainment’ has warned of financial uncertainty as its revenue is down amidst “continued weakness in the operating performance.”

In a quarterly activities report, detailing the insights for the second quarter ending 31 December 2024, the company states that Q2 FY25 revenue is down 15% compared to Q1.

The revenue for the quarter was AU$299M (roughly $186.94M in USD) which shows a decline from the previous quarter which had revenue of AU$351M.

The company is Australia’s biggest listed casino group and it was founded in 2011 when it was formerly known as Echo Entertainment.

“The results for the period reflect continued weakness in the operating performance of the Group due to the ongoing challenging consumer environment, the impact of mandatory carded play and cash limits in NSW, and costs associated with ongoing remediation activities.”

The group revenue being down 15% compared to the previous quarter is said to have been “due to the closure of Treasury Brisbane Casino, continued softness at The Star Sydney following the implementation of mandatory carded play and cash limits.”

The operating expenses of the company are down too as they see lower corporate costs, reduced activity, and the closure of the Treasury Brisbane casino. The casino was permanently closed on 25 August 2024.

It was only last week when The Star Entertainment brought in safe harbour provisions to protect the directors from potential insolvency trading liability.

The report also states the operator is looking at other liquidity solutions due to its “ongoing financial and liquidity challenges.”

The gambling and entertainment company writes: “While discussions continue with respect to a range of different solutions, there is no certainty that any of these negotiations will result in one or more definitive arrangements that might materially increase the Group’s liquidity position.

“In the absence of one or more of those arrangements, there remains material uncertainty as to the Group’s ability to continue as a going concern.”

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