Star Entertainment Group in Australia has achieved a positive EBITDA for the quarter ending December 31, 2025, which is the first time in two years that the company has been back in the black on EBITDA.
The company disclosed revenue of AU$301 million, which was a 6% increase from the previous September quarter, and it has changed a loss of AU$13 million into a profit of AU$6 million. Operations at The Star Sydney have stayed consistent but have remained at historically low levels mainly because of the mandatory carded play rules and cash limits. The update also illustrated the company’s progress with refinancing and the possible sale of its Brisbane stake, with AU$130 million in cash at the end of the quarter.
Bally’s Corp together with Investment Holdings Corp after regulatory approval in November, are now holders of a combined 61 percent stake in the company. The company’s prospects rely on finishing refinancing, closing the Brisbane transaction, and settling the long, standing AUSTRAC court case.
The Gold Coast property benefited from holiday season traffic, which helped the overall figures rise. Additionally, higher fees in Brisbane also contributed, demonstrating how even in challenging markets, operational changes can result in quick gains. Sydney’s stabilization is a slight positive, but carded play requirements and cash limits continue to restrict the gaming volumes. These measures, aimed at preventing money laundering, have altered gambling patterns in Australia. The 6 percent growth in revenue signifies a move away from losses but at the same time, it shows that the company still has a long journey to get back to its previous levels.
Star is divesting its 50 percent share in the Destination Brisbane Consortium, which is managing Queens Wharf Brisbane, to Hong Kong partners Chow Tai Fook and Far East Consortium, who will each be holding 25 percent. The deadline for the first stage on November 30 has already passed, so either party could withdraw, but Star considers the completion very likely in view of the progress to key conditions in December. Selling off this equity would strengthen the balance sheet, allow the company to concentrate on its casino core assets, and lower its exposure to major projects.
Instead of applying for waivers to cover possible breaches of financial covenants under the Senior Facility Agreement as at December 31, Star is in talks for refinancing with existing lenders and potential new investors before the compliance certificate deadline of February 14. The breaches of covenants would be put on hold if the company obtained a firm commitment letter and the deal was closed by March 31, 2026. The recent takeover by Bally’s and its partner is a great argument for new funding, as they have injected fresh capital to stabilize operations.
The dispute in the Federal Court between AUSTRAC and the company regarding the alleged AML/CTF breaches is the major unresolved issue, and both the time and the expected judgment amount are the main determining factors. The AU$450 million settlement that Crown Resorts made for the same problems may be a kind of benchmark for the amount that Star Entertainment Group will be required to pay.
Positive EBITDA marks the end of a rough time, and increased revenue reveals the company’s strengths. Getting rid of Brisbane, refinancing successfully, and having a clear AUSTRAC case give a real sense of direction, while cash on hand offers the company some margin of safety.
