Mr. Lumin,You're right that QWB was a significant drain, and its...

Mr. Lumin,

You're right that QWB was a significant drain, and its removal does help from a liquidity and balance sheet standpoint. But let’s not mistake this for a turnaround.

As noted in the Grant Samuel report, even with the QWB exit, the recapitalisation is not a full solution — further funding may still be required within 12 months if performance doesn’t improve.

If you’re assessing this from an investment perspective, then the critical focus is not just balance sheet relief but core profitability and earnings power. The sharp decline in Adjusted EBITDA — from $426.7m in FY21 to a loss of $26.4m in 1HY25 — underscores structural weakness in the business model. This is before accounting for interest or depreciation.

More concerning, even post-bailout, The Star faces:
--> Higher casino duties (especially from FY31 in NSW).
--> Intensifying regulatory burdens (cash limits, AML/CTF).
--> EGM market share loss to pubs and clubs.
--> Pending liabilities from AUSTRAC, ATO, and Multiplex.

You need real earnings growth to fund penalties, sustain operations, and eventually return capital to shareholders. But with so much working against them — including strained relations with regulators and state governments — it’s hard to see where that growth comes from right now.