By Rajasik Mukherjee and Kumar Tanishk Feb 27 (Reuters) – Australia’s Star Entertainment Group reported a smaller loss for the first half on Friday, supported by seasonally stronger trading volumes for the second quarter of fiscal 2026. The country’s second-largest casino operator reported a normalised loss of A$75.7 million ($53.86 million) for the six months […]
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Australian casino operator Star Entertainment’s first-half loss narrows
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By Rajasik Mukherjee and Kumar Tanishk
Feb 27 (Reuters) – Australia’s Star Entertainment Group reported a smaller loss for the first half on Friday, supported by seasonally stronger trading volumes for the second quarter of fiscal 2026.
The country’s second-largest casino operator reported a normalised loss of A$75.7 million ($53.86 million) for the six months ended December 31, compared with a loss of A$136 million logged a year earlier and a Visible Alpha consensus estimate of a loss of A$108.6 million.
Star benefited from an 11% drop in operating expenses, which was driven by a reduction in volume-related costs.
The embattled firm reported a half-year revenue of A$585 million, down around 10% from a year ago, hit by an 18% fall in gaming revenue on the back of continued challenging trading conditions and the closure of its Treasury Brisbane Casino.
Star’s margins were strained by New South Wales’ ban on cash transactions, introduced to curb money‑laundering.
The company said operating conditions remained challenging for Star Sydney Casino in January, with revenue down 6% from a year ago.
“…Star Entertainment’s revenue softness tells a more cautious story as gaming revenue continues to decline, Sydney’s flagship property is still loss-making, and the company’s immediate survival seems to hinge on completing a refinancing deal rather than the strength of its own earnings,” said Marc Jocum, senior product and investment strategist at Global X ETFs
The company said it secured a waiver of the December 31, 2025, financial compliances under its loan facility agreement. Under the terms of the waiver, Star must deliver a refinancing commitment letter by March 31, and execute a refinancing of the loan facility agreement by May 15, to avoid a default.
On Thursday, Star reached a deal for a non-binding term sheet with U.S.-based private credit investment manager WhiteHawk Capital Partners for a proposed refinancing of its debt.
($1 = 1.4055 Australian dollars)
(Reporting by Rajasik Mukherjee, Kumar Tanishk and Sherin Sunny in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala)