Star Entertainment Group said its available cash had fallen to A$130 million at December 31, down from A$234 million six months earlier. The casino operator reported a half-year operating loss of A$7.6 million and a statutory loss of A$109.7 million, including A$34 million of one-off significant items.
Revenue fell 10% to A$584.9 million. The group also recorded a A$53 million net cash outflow from operations, spent A$22 million on capital expenditure and had A$49 million in finance costs. It said the revenue decline was mainly due to an 18% fall in gaming revenue.
At The Star Sydney, domestic gaming revenue dropped 10.6% to A$257 million, reflecting mandatory carded play and a A$5,000 daily cash limit. January revenue at the Sydney property was down 6% from a year earlier.
As reported in July, the group was already under pressure from licence curbs at The Star Sydney. The latest update said the fall in gaming revenue was also tied to reforms regulators forced the company to implement after its 2021 money-laundering scandal.
Chief executive Bruce Mathieson Jr said Star was streamlining operations and pursuing cost-cutting and customer-attraction initiatives. The company also said its senior lenders, Washington H Soul Pattinson, Macquarie, Perpetual and Deutsche Bank, had again waived financial covenants until March 31, helping to keep refinancing talks alive.
Star said it had tentatively agreed terms with WhiteHawk Capital Partners for a refinancing. The company later confirmed it had entered into a binding credit facility agreement with funds associated with WhiteHawk for a USD 390 million, about A$540 million, three-year refinancing, with quarterly amortisation due to start on March 31, 2027 and minimum liquidity and coverage tests attached.
The company warned that its ability to continue as a going concern remained materially uncertain, with near-term matters critical to its liquidity and financial outlook. The biggest unknown remains a Federal Court penalty in AUSTRAC’s money-laundering case.
AUSTRAC said its civil penalty proceedings against The Star Pty Limited and The Star Entertainment QLD Limited followed a compliance campaign that began in 2019 and an investigation opened in 2021. The regulator said it had identified poor governance, failures of risk management and failures to maintain a compliant AML/CTF programme, along with inappropriate ongoing customer due diligence over a number of years.
Star said AUSTRAC has requested a A$400 million penalty, while the company says it can pay only about A$100 million without being pushed into administration. It is not yet known when the Federal Court will rule. Shares were flat at 12.5 cents after midday, after dipping to 12 cents in morning trade.
