In the first half of the fiscal year, Star experienced a 14.6% decline in revenue to AU$865.7m (£445.4m/€520.7m/US$564.3m).
Despite this, the company managed to achieve a modest net profit of $9.1m, a notable improvement from the $1.26bn loss recorded in the preceding year.
The substantial loss in the first half of 2023 stemmed from the devaluation of casinos in Sydney, Gold Coast, and Brisbane.
This followed a series of lapses in anti-money laundering protocols and social responsibility measures at these establishments.
Although there appeared to be some signs of recovery for Star in the first half of 2024, recent developments have raised concerns about its future.
The New South Wales Independent Casino Commission (NICC) announced a second inquiry into Star this month.
The inquiry, chaired by Adam Bell SC, is scheduled to run for 15 weeks, with a final report expected by 31st May.
It will assess Star’s compliance with the recommendations put forth in the initial inquiry.
Following the first inquiry, Star was deemed unsuitable to hold a casino license in New South Wales, a decision made in September 2022.
The announcement of the second inquiry prompted Star to postpone the release of its first-half results until 29th February.
Although the results presented a mixed picture, CEO Robin Cooke highlighted the company’s achievement of key regulatory milestones during this period.
Cooke acknowledged the ongoing challenges in the regulatory landscape but affirmed Star’s commitment to remediation efforts and enhancing risk management and governance practices.
In terms of financial performance, domestic gaming revenue decreased by 16.7% to $683.3m compared to the first half of 2023.
Non-gaming revenue also saw a decline of 5.6% to $176.4m, with other revenue dropping by 3.2% to $6.0m.
Revenue from Star’s casino properties experienced decreases across the board. Star Sydney, the flagship site, reported a revenue of $450.0m, down 16.9% from the previous year, attributed to regulatory changes and reduced consumer spending.
Similarly, revenue at Star Gold Coast and Treasury Brisbane fell by 13.6% and 9.6% respectively, influenced by factors such as normalizing consumer spending patterns and increased competition.
Despite the challenges, Star managed to reduce operating costs and increase earnings before interest and tax (EBIT) by 48.0%.
However, EBITDA before significant items declined by 43.1%.
Looking ahead to the second half of the year, early revenue and EBITDA trends for Star remain largely consistent with the first half, with only slight softness compared to the previous year.