The Star Entertainment Group’s latest report is in, with revenue down by 29% in FY25 compared to the year prior.
This drop is described as being due to “challenging trading conditions” related to “regulatory reforms including mandatory carded play and cash limits at The Star Sydney” as well as “implementation of The Star’s remediation program and loss of market share.”
The decrease also reflects the closure of the Treasury Brisbane Casino, and revenues from The Star Brisbane now being recognized as equity accounted profit / (loss) from associates.
The gaming revenue was down 37%, but when you exclude the Treasury Brisbane Casino closure, the gaming revenue was down 22%.
The operating expenses have declined too, by 10%. This has been driven by the closure and The Star’s cost-out program, partially offset by increased costs associated with investment in risk management, controls, and IT.
Star Entertainment CEO speaks on 2025 financial results
Net funding costs, however, increased by $14 million, reflecting the revised debt package executed in November 2024. It’s no surprise that the year has brought more uncertainty and difficulties for the company, with the Group CEO and managing director Steve McCann, mentioning these challenges.
“I want to acknowledge the hard work and commitment of our team members in the face of the ongoing challenges of the Group. While there remains work to be done, I note the significant progress that the Group has made on its remediation journey to date and the implementation of regulatory reforms.
“The Group has sourced additional funding to enable The Star to continue to provide thousands of jobs and support tourism and entertainment in the markets in which we operate.”
McCann continues: “Our announcement today highlights a number of key interdependencies that are critical to the Group’s future. The Group continues to require significant support from a range of its stakeholders including governments, regulators, lenders and investors. Without that support it will be difficult to navigate the various challenges facing the Group and to create a sustainable future for the business.”
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