Star Entertainment Group has reported a significantly reduced EBITDA loss for Q4 FY26, as cost-cutting measures helped offset continued weakness at its Sydney casino.
For the three months to the end of June, Star posted reported revenue of A$265m, broadly in line with the previous year’s comparable period.
The operator’s EBITDA loss narrowed from A$27m to A$8m, marking a notable improvement despite persistent trading difficulties at its flagship Sydney venue.
Star described trading levels at its Sydney casino as sitting at “historical lows,” a situation driven largely by the introduction of mandatory carded play and A$5,000 daily cash limits.
Those regulatory reforms, fully implemented in October 2024, have pushed average daily revenue at the Sydney property down by 20% since they came into effect.
Despite these pressures, Star Sydney remained the operator’s primary revenue driver, generating A$150m for the quarter, which was 7% lower than Q4 of the prior year but 2% ahead of Q3 FY26.
The Gold Coast operation provided a brighter picture, with Star Gold Coast revenue rising 12% year-on-year to reach A$107m during the period.
Brisbane revenue dropped sharply by 46% to just A$5m, reflecting changes to the casino’s management agreement following Star’s exit from the Destination Brisbane Consortium in April.
Star now recognises an operator fee rather than full property revenue from Brisbane, pending regulatory approval of an amended Casino Management Agreement.
Liquidity improved considerably by the end of Q4, with Star holding A$267m in cash and cash equivalents, more than double the A$120m recorded at the close of Q3, aided by its refinancing with WhiteHawk Capital.
Operating expenses remained flat quarter-on-quarter at A$206m but fell 11% compared to the same period last year, reflecting ongoing cost reduction initiatives across the business.
Star acknowledged that its ability to continue as a going concern remains dependent on resolving a limited number of material uncertainties, though it pointed to progress made through its refinancing and the first stage of its Brisbane transaction as encouraging signs.
