Australian gambling operator The Star saw a rebound in performance in the second quarter of fiscal year 2026 (ending December 31, 2025), with a slight increase in revenue and EBITDA successfully turning from a loss to a profit. This achievement was due to stable operations following the acquisition by Bally’s Group and an investment holding company, but the company still faces multiple pressures such as tighter regulation, tight cash flow, and debt disposal, and has not yet fully "escaped danger". As an important participant in the Australian gambling industry, its transformation progress and compliance response cases can be referenced on the PASA official website.
Performance Highlights: Slight Increase in Revenue, EBITDA Back on Profit Track
This quarter, The Star's core performance indicators showed positive changes, ending the previous loss situation:
Revenue performance: Quarterly revenue reached 301 million Australian dollars (approximately 212.17 million US dollars), a 6% increase from the previous quarter and a slight 1% year-on-year increase, achieving a steady recovery;
Profit reversal: EBITDA turned from a loss of 13 million Australian dollars (approximately 9.16 million US dollars) last quarter to a profit of 6 million Australian dollars (approximately 4.23 million US dollars), a significant improvement from a loss of 8 million Australian dollars (approximately 5.64 million US dollars) in the same period last year;
Growth drivers: Sydney operations tended to stabilize (although still at historical lows), Gold Coast operations were driven by seasonal factors, and Brisbane store operator costs were raised, all three factors jointly supported the performance rebound.
Core Pressure: Tighter Regulation, Dual Pressure on Cash Flow and Debt
Despite improved performance, The Star's operational and financial conditions still face significant challenges:
Regulatory environment tightening: Mandatory named betting and cash limit policies implemented in New South Wales, and stricter regulatory requirements faced by all properties, continue to increase operational difficulties;
Relatively tight cash flow: In November 2025, Bally’s and the investment holding company injected 300 million Australian dollars (approximately 211.47 million US dollars), holding 38% and 23% of the shares respectively, but as of December 31, the company's available cash was only 130 million Australian dollars (approximately 91.64 million US dollars);
Debt and joint venture issues are tricky: Although the debt maturity date of the Brisbane Destination Alliance (DBC) was successfully extended, the transaction to exit the Queen’s Wharf Brisbane joint venture has not yet been completed, and the first phase agreement has expired, only confirming that all parties are still committed to advancing the transaction.
Future Concerns: Penalty Risks and Continued Operational Uncertainty
The Star's subsequent development is still subject to several pending issues, with high uncertainty:
Potential penalty pressure: The Australian financial regulatory authority (AUSTRAC) has not yet made a judgment on the company's previous anti-money laundering/anti-terrorism financing (AML/CTF) violations, and the amount and timing of fines are unknown, which will directly affect the implementation of the company's capital management strategy;
Continued operation depends on external factors: The company explicitly stated that whether it can continue to operate still depends on the outcomes of several major uncertainties, with no significant updates currently available;
Limited support from fixed costs: The Brisbane store receives a fixed operator fee of 5 million Australian dollars (approximately 3.52 million US dollars) per month, and 15 million Australian dollars (approximately 10.57 million US dollars) related revenue has been confirmed this quarter, providing some buffer for performance.
————
This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data report: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
