Star Entertainment Group narrowed its statutory net loss to AU$307.3 million ($220 million) in FY26 from AU$428 million a year earlier, while warning that material uncertainty remains over its ability to continue operating.
The Australian casino group said its liquidity and financial outlook depend on several factors, including a looming AUSTRAC penalty over historical anti-money laundering failures, further revenue growth and cost savings, and a return to license suitability in Sydney.
For the year ended June 30, normalized EBITDA losses narrowed to AU$16.1 million ($11.5 million) from AU$76 million, while normalized revenue declined 2.2% to AU$1.1 billion ($788 million). Revenue reached its lowest point in the third quarter amid challenging trading conditions and continuing regulatory compliance requirements.
Cost-cutting measures followed a review of the group’s resourcing structure, operating model and strategic priorities. Initiatives, including a major reduction of its corporate office, lowered group corporate costs by 38% to AU$178 million ($128 million).
The Star Sydney
At The Star Sydney, gaming revenue fell 9.1% to AU$499.8 million ($358 million), reflecting softer table games performance amid strengthened regulatory controls and casino reforms in New South Wales, including mandatory carded play and restrictions on cash use. Property EBITDA declined 30.6% to AU$63.7 million ($45.6 million).
The Star Gold Coast recorded a 3.2% increase in gaming revenue to AU$256.4 million ($184 million), primarily driven by gaming machines, while property EBITDA edged up 0.3% to AU$79.8 million ($57.2 million).
Star also generated AU$59.7 million ($42.8 million) in operator fee revenue from The Star Brisbane, including AU$10.2 million ($7.3 million) released from escrow in March after completion of the first stage of a transaction under which Star offloaded its 50% stake to its Hong Kong partners. Star now receives AU$4.5 million ($3.2 million) a month from those partners to operate the property.
The results follow the November 2025 acquisition by Bally’s Corp and Investment Holdings Pty Ltd of a controlling stake in Star.
“We have moved to a more accountable, property-led operating model and a renewed focus on performance, customers and responsible operations,” said Group CEO and Managing Director, Bruce Mathieson Jnr.
“The Group has successfully refinanced its corporate debt and continued the work of strengthening its balance sheet with a strong liquidity position. 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 Star Gold Coast
Star said it has prioritized patron experience and marketing since the third-quarter low. Group-wide July revenue was 12% above the March 2026 quarter, while combined July revenue at The Star Sydney and The Star Gold Coast rose 6% year-on-year and 8% from the FY26 fourth-quarter monthly average to AU$92.4 million ($66.2 million).
The company attributed the improvement to slots growth and “ongoing improvement in customer engagement and inflection to growth.” If sustained, Star said the current quarter would deliver its highest average monthly revenue since 2Q25.
Charles Diao, Star’s Group Chief Financial Officer and Interim Group Chief Risk Officer, said: “Through the completion of various financing and strategic transactions, along with critical operational improvements implemented by new leadership, The Star is materially improved in its financial position and risk posture.
“We see the clear progress that we are making in effecting the operational turnaround at The Star and are confident that we have begun the process of recovery towards the sustainable and profitable financial performance from a few years past.”