Star Entertainment Group has reported a significantly reduced operating loss for FY26, with cost cuts and stronger slots performance beginning to turn the tide.
The Australian casino operator posted normalised FY26 revenue of $1.101bn, down slightly from $1.125bn recorded in the prior financial year.
The normalised EBITDA loss narrowed sharply to $16m, a dramatic improvement from the $76m loss reported in FY25.
The statutory net loss came in at $307m for the year, compared with a steeper $428m loss posted in the previous financial year.
Normalised loss after tax was $159m, before $144m of significant items and a further $4m from discontinued operations.
Revenue across the group’s main properties stabilised during the June quarter, ending what had been almost two years of consecutive quarterly declines.
July revenue at The Star Sydney and The Star Gold Coast rose 6% from July 2025, and came in 8% above the monthly average recorded across the June quarter.
Slots revenue grew year on year at both the Sydney and Gold Coast properties, though table games at Sydney remained soft throughout the period.
Cash non-gaming revenue also fell after higher spending on complimentary offers, adding further pressure to an already challenging revenue environment.
Bruce Mathieson Jnr, who became group CEO in December following a $300m equity investment by Bally’s Corporation and Investment Holdings, acknowledged the progress made while stressing the importance of ongoing regulatory work.
Mathieson said: “The Group has successfully refinanced its corporate debt and continued the work of strengthening its balance sheet with a strong liquidity position.”
He added: “These achievements have provided greater stability and a stronger foundation for the future. Returning to suitability remains critical to our future, and the work required to achieve that objective has and is being increasingly embedded in how we operate every day.”
The group’s shift to a property-led operating model delivered $75m in reduced corporate costs during FY26, with annualised corporate costs in the June quarter sitting $111m, or 38%, below FY25 levels.
Average monthly free-cash-flow burn stood at $20m during the first half, and the company now expects to begin building cash in FY27, excluding non-operating items.
Cash and cash equivalents stood at $267m on 30 June, with total cash and cash deposits reaching $368m when including restricted deposits.
In May, the group completed a refinancing through a US$390m secured term loan from WhiteHawk Capital Partners, maturing in May 2029 and adding approximately A$130m in available liquidity.
The company also completed the first stage of its Brisbane joint-venture transaction in March, removing its $700m guarantee relating to Destination Brisbane Consortium debt.
The second stage of that transaction is expected to complete by 31 March 2027, subject to conditions, though uncertainty over an AUSTRAC penalty and licensing matters still casts substantial doubt on the group’s ability to continue as a going concern.
The Star still requires The Star Sydney’s casino licence to be reinstated, and Queensland must withdraw the deferred suspension of The Star Gold Coast’s licence for the recovery to be secured.
