Star Entertainment Warns Tough Conditions Will Continue After Annual Loss
Synopsis
Star Entertainment posts a bigger annual loss than expected and flags continued pressure from weak gaming revenue and regulatory scrutiny.
Key Highlights
- Star Entertainment’s annual loss for the year to June 30 ballooned 71% to A$307.3 million (US$209 million).
- The company cautioned that challenging trading conditions will persist after it reported weak table gaming revenue and the implementation of a regulatory penalty (Release, 22 Aug D);
- After the announcement, Star shares fell 3.9%
Bigger Loss Than Expected
Australian gambling and casino operator Star Entertainment posted US$3073 million statutory net loss after tax for the year to June 30. That was smaller than the A$427.9 billion loss a year earlier but bigger than analysts on average had expected a loss of A$180 million.
Star shares tumbled 3.9% over the day as the broader Australian market held mostly steady.
Ongoing Regulatory Pressure
Since 2021, the company has also faced growing regulatory scrutiny over alleged preaches of anti-money laundering and counter terrorism financing laws. Star’s business units faced civil proceedings in 2022 from Australia’s financial crime watchdog. The company also said it continues to work through challenging trading conditions as it works towards returning to sustainable profit levels, managing its debts and continuing to respond to the regulatory action which is ongoing.
Signs of Recovery in July
However, Star did report that the results for its Star Sydney and Star Gold Coast properties yielded 6% growth in combined revenue in July. The return to growth reflected stronger customer engagement, the company said.
Former CEO Banned and Fined
The firm-wide issues reach even the highest echelons of its former leaders. In June an Australian court ordered ex-CEO Matthias Bekier to pay AU$700,000 and banned him from managing companies for six years for failing to adequately supervise money laundering risks.
Refinancing and Investment Support
After a string of financial difficulties, Star secured a debt refinancing in May via a $390 million secured term loan from U.S.-based private credit firm WhiteHawk which bolstered its liquidity position with A$130 million. That followed an A$300 million capital raising in 2025 orchestrated by U.S. casino operator Bally’s and the Mathieson family, who retain Star’s largest shareholding.
Source: Reuters
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