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Star Entertainment Group reported an AU$8 million EBITDA loss for the 3 months to 30 June 2026, a marked improvement from the AU$27 million loss recorded a year earlier, although it was wider than the AU$1 million loss posted in the March quarter. The result came as revenue held steady at AU$265 million, with gains at The Star Gold Coast helping offset continued pressure in Sydney.
Sydney Remains Under Pressure
The company said The Star Sydney continued to face constraints from recently introduced regulations, with average daily revenue down 20% since mandatory carded play and an AU$5,000 daily cash limit were introduced in October 2024. That continued to affect the performance of the asset despite the broader group beginning to stabilise.
Revenue in Sydney declined by 7% compared to the same period last year, but increased by 2% quarter-to-quarter to reach $150 million in the June quarter. As for the Segment EBITDA, the loss was reported at $10 million. According to Star, the result was due to weakness in table games and non-gaming, while electronic gaming machines showed good growth.
It can be seen from the figures above that the venue continues to get used to the regulations, while some parts of its operations have been improving during the quarter. It was described by the company as a constrained performance instead of a weak one.
Improvement at the Gold Coast Drives Growth
Star Gold Coast was the primary driver of growth for the quarter, with revenues increasing by 6% and 12%, respectively, to AU$107 million. The segment’s EBITDA came in at AU$13 million, backed by a 21% increase in gambling revenue from table games and slot machines.
The performance at Gold Coast helped balance the softer Sydney result and was central to the group’s steadier quarterly outcome. Star also collected an AU$3 million management fee for The Star Brisbane during the period.
The business at Gold Coast provided a clearer sign of operational improvement, particularly in gaming revenue. That growth offset some of the strain still evident in the group’s other operations and gave the quarter a more stable tone overall.
Cost Cuts And Liquidity
Star said total operating expenses fell 11% year-on-year to AU$206 million, helped by cost-saving initiatives that included cuts to staff numbers in the corporate office. Lower corporate costs of AU$6 million were partly offset by higher marketing spending and seasonally higher labour costs.
Even with those pressures, the company said its liquidity improved materially by the end of June. Total cash and cash equivalents stood at AU$267 million as of 30 June 2026, up from AU$120 million at 31 March 2026 following the completion of refinancing through Whitehawk Capital Partners.
The improvement in cash position gave the company more room to manage its ongoing turnaround efforts. It also reflected the benefit of the refinancing after a period in which liquidity remained a major focus for the business.
Next Stage Of The DBC Sale
The refinancing was one of several key steps taken since Star was acquired by Bally’s Corp and Investment Holdings Pty Ltd last year in efforts to keep the company afloat. Another major move was the sale of Star’s 50% stake in Destination Brisbane Consortium, the owner of The Star Brisbane.
Star completed the first stage of that transaction in April, selling its DBC interests to Hong Kong partners Chow Tai Fook and Far East Consortium. In its Friday ASX filing, the company said it expects to satisfy the conditions precedent for the second and final stage in the second half of this year and by no later than 31 March 2027.
The company’s latest update shows a business that is still under pressure, but with Gold Coast growth, lower costs, and stronger liquidity helping to narrow the gap.
Source: Inside Asian Gaming
