Star Entertainment Returns to Positive EBITDA of AU$12 Million

Australia.- 28 October 2026 | www.zonadeazar.com The Star Entertainment Group reported a recovery in operating performance during the first quarter of its 2027 financial year, supported by cost reductions and stronger results at its Sydney and Gold Coast casinos.

The Australian operator recorded positive EBITDA of AU$12 million (approximately US$8.4 million) for the three months ended 30 September 2026, compared with an EBITDA loss of AU$13 million during the corresponding period last year.

The AU$25 million year-on-year improvement represents an encouraging development for the company, which continues to face financial and regulatory challenges.

Revenue Increases by 2%

Star Entertainment reported consolidated quarterly revenue of AU$284 million, representing a 2% year-on-year increase.

Revenue also rose by 8% compared with the previous quarter, indicating a gradual improvement in business performance.

Key financial indicators included:

  • Consolidated revenue: AU$284 million.
  • Year-on-year revenue growth: 2%.
  • Quarter-on-quarter revenue growth: 8%.
  • EBITDA: Positive AU$12 million.
  • Previous year’s EBITDA: Negative AU$13 million.
  • Year-on-year EBITDA improvement: AU$25 million.

The company attributed the results to a combination of operational efficiency measures and stronger revenue performance across its principal properties.

Sydney and Gold Coast Drive Recovery

The Star Sydney and The Star Gold Coast were the main contributors to the group’s improved financial performance.

Together, the two casinos generated AU$279 million in revenue, representing more than 98% of consolidated group revenue.

Individual property results included:

  • The Star Sydney: AU$162 million in revenue and AU$15 million in EBITDA.
  • The Star Gold Coast: AU$117 million in revenue and AU$20 million in EBITDA.

The two properties generated combined EBITDA of AU$35 million.

Performance benefited from stronger electronic gaming machine revenue, supported by marketing initiatives and revenue optimisation measures.

Cost Reductions Improve Profitability

Star Entertainment continued implementing measures designed to reduce expenditure and improve operational efficiency.

Unallocated corporate costs stood at AU$23 million during the quarter.

Lower operating expenses, combined with improved revenue, enabled the company to reverse the EBITDA losses recorded during the corresponding period last year.

The improvement represents an important milestone in Star Entertainment’s broader financial recovery programme.

Cash Holdings Reach AU$239 Million

As of 30 September 2026, Star Entertainment held approximately AU$239 million in cash and cash equivalents.

Including restricted deposits, the group’s total cash and deposit position reached approximately AU$319 million.

The company reported positive operating free cash flow after excluding one-off items.

However, reported operating cash flow still showed a net outflow of AU$15.5 million, highlighting the continuing financial challenges facing the business.

CEO Comments on Financial Recovery

Bruce Mathieson Jr., Chief Executive Officer of Star Entertainment, highlighted the company’s improving financial outlook.

“We now expect to start building cash reserves in FY27, before non-operating items,” he stated.

The company expects the 2027 financial year, running from July 2026 to June 2027, could become its first in more than two years to generate positive annual net operating cash inflows before exceptional items.

Shares Rise 13% Following Results

The financial announcement prompted a positive reaction from investors.

Star Entertainment shares closed 13% higher at AU$0.135 on 27 October, reaching their highest closing level in three weeks.

During the trading session, the company’s shares climbed as much as 26.1%.

The market reaction reflected improving investor sentiment, although analysts cautioned that significant financial risks remain.

Regulatory Challenges Continue

Despite the operating recovery, Star Entertainment continues to face regulatory restrictions in Australia.

The Star Sydney’s casino licence remains suspended, with the appointment of the special manager extended until 30 June 2027.

In Queensland, the suspension of The Star Gold Coast’s licence remains deferred, while special management arrangements have been extended until 31 March 2027.

These measures form part of the regulatory oversight introduced following investigations into the company’s compliance practices.

Outlook for the 2027 Financial Year

The return to positive EBITDA represents progress for Star Entertainment following several periods of operating losses and financial difficulties.

The company remains focused on three priorities:

  • Consolidating revenue growth across its main casino properties.
  • Maintaining cost reduction and operational efficiency measures.
  • Strengthening liquidity while meeting regulatory requirements.

Although the latest quarterly results demonstrate significant improvement, the company continues to face uncertainties surrounding the sustainability of its recovery.

Impact on Australia’s Casino Industry

Star Entertainment’s performance provides an important indicator for Australia’s land-based casino industry.

The recovery at its Sydney and Gold Coast properties demonstrates how operational improvements and cost management measures can contribute to stabilising casino operators’ finances.

However, ongoing regulatory restrictions and liquidity requirements will remain important factors influencing the company’s future performance.

The September quarter represents a significant step towards Star Entertainment’s stabilisation, although the return to positive operating earnings does not yet amount to a complete financial recovery.

Edited by: @fonta

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