Australian casino operator Star Entertainment's first-half loss narrows

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February 27, 2026 4:40 AM EST

A view of signage at Star Entertainment's The Star casino in Sydney, Australia, March 3, 2025. REUTERS/Christine Chen

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)


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