Economists have started to lower their forecasts for second quarter GDP after the release of weaker than expected company profits data. Membership fees for the quarter hit $US1.19 billion, up from $US1.11 billion in the second quarter of 2024, with the company reporting 78.4 million paid memberships and 140.6 million total cardholders. Star has yet to issue a statement to the stock exchange — we'll keep you updated when it does Star Entertainment will sell its stake in the new Queen’s Wharf casino and entertainment complex in Brisbane, a deal that will give the company enough cash to stave off collapse for several months. In an update posted to the ASX on Monday night, Star has confirmed it has agreed to a $300 million rescue package with American casino and gaming group, Bally's. Star shares have been suspended from trade on the Australian Securities Exchange since March after the company failed to submit its half-year accounts. The company has taken an appropriate approach to shareholder distributions with the suspension of dividends during the pandemic.
The company was fined $100 million by both states with a new manager appointed to oversee Star's operations to regulated standards. Its Sydney casino licence was suspended while in Queensland, a 90-day suspension has been deferred to December 2023. The casino operator burnt through $107 million of its available cash in the December quarter, blackcoin.co which should be its busiest trading period of the year. Star Casino shares face an uphill battle as the company struggles with regulatory fines, lightning-fast cash burn, and declining financial performance.