Star Entertainment Back In EBITDA Profit, Licence Held
The Star Entertainment Group has swung back to a positive EBITDA, but its Sydney casino licence remains suspended. Regulators remain the bigger test: the group's remediation plan and its compliance with responsible gambling standards are central to its recovery.
The Australian operator reported Q1 FY27 group EBITDA of A$12 million for the three months to September 30, 2026, compared with a loss of A$13 million a year earlier, in its quarterly activities report to the ASX. Gaming Intelligence reported that shares rose 13% on the day the results landed.
The Quarter In Numbers
Group revenue came to A$284 million, up 2% on the same quarter last year and 8% on the previous quarter. The Star Sydney and The Star Gold Coast together produced A$279 million, up 5% year on year and 9% quarter on quarter.
The company said that is the first year-on-year revenue growth for the two properties since it began quarterly reporting in the quarter to September 2024, and it credits strong electronic gaming machine revenue.
Combined EBITDA at the two owned casinos was A$35 million, up 164% on a year ago. The Star Sydney made A$15 million, against A$3 million a year earlier, while The Star Gold Coast made A$20 million, against A$11 million.
Unallocated corporate costs fell 29% to A$23 million. The managed Star Brisbane resort posted a record EBITDAM of A$37 million, although the operator fee The Star earns from it fell 67% to A$5 million under the amended management agreement.
Licence Status
The company confirmed that The Star Sydney licence stays suspended, and that the manager appointed to run the property will remain until June 30, 2027 unless the NSW Independent Casino Commission ends the appointment sooner.
In Queensland, the deferred suspension of The Star Gold Coast licence and the special manager's term both run to March 31, 2027, as does the external adviser's appointment at The Star Brisbane. The Star said it continues to engage with regulators and government on all three.
What Management Said At The AGM
The results arrived on the same day as the group's annual general meeting. In the chairman and chief executive addresses, CEO Bruce Mathieson Jnr described the licence outcome as disappointing and said returning to suitability is not defined by one milestone but by consistently meeting the standards expected of a responsible operator. He said more than 85% of the remediation plan milestones are complete, and that sales momentum continued into October.
Chairman Soo Kim told shareholders that both Sydney and the Gold Coast are now EBITDA positive and that the group's cash balance stands at roughly A$200 million. He also said the group has finished moving operational control to each property, which he called a regulatory milestone as well as a business one.
Cash And Going Concern
Cash and cash equivalents were A$239 million at September 30, down from A$267 million at June 30. The Star expects FY27 to be the first year in more than two years in which it generates net operating cash inflows before one-off items, and operating free cash flow excluding one-offs was positive in the quarter.
The company also repeated a warning. A number of continuing material uncertainties, some outside its control, may affect its future assessment of its ability to continue as a going concern, and it said there is no assurance they will be resolved by the time it files half-year accounts.
