The Star Entertainment Group reduced its quarterly EBITDA loss by 70% year-on-year during the final three months of fiscal 2026, supported by cost reductions and higher gaming activity at The Star Gold Coast. The company still faces material uncertainties affecting its ability to continue as a going concern.

For the three months ended June 30, The Star reported unaudited revenue of AU$265 million, broadly unchanged from the previous quarter and 2% below the corresponding period of fiscal 2025.

EBITDA before significant items showed an AU$8 million loss, compared with an AU$27 million loss a year earlier. The result weakened from the AU$1 million loss recorded in the third quarter. Group operating expenses declined 11% to AU$206 million as management continued its cost-saving programme.

Sydney Remains Under Pressure

The Star Sydney generated AU$150 million in revenue, rising from AU$147 million in the preceding quarter and falling from AU$162 million a year earlier.

Management said trading had “stabilised”, although levels “remain at historical lows” following regulatory reforms.

According to Asia Gaming Brief, citing the official report (pdf), gaming revenue decreased 4% year-on-year. Growth from electronic gaming machines offset some of the weakness in table games and non-gaming revenue.

The Sydney segment recorded an AU$10 million EBITDA loss after corporate allocations, compared with an AU$4 million loss in the third quarter and AU$14 million a year earlier. Average daily revenue has declined 20% since the introduction of mandatory carded play.

The Star Gold Coast produced the group’s strongest result. Revenue reached AU$107 million, up from AU$101 million in the previous quarter and AU$96 million in the same period last year.

Gaming revenue increased 21% year-on-year as table game and electronic gaming machine activity improved. Non-gaming revenue remained broadly unchanged.

Property EBITDA reached AU$22 million. After corporate allocations, the Gold Coast segment generated AU$13 million in EBITDA, up from AU$2 million a year earlier. The company attributed the improvement to “stronger volumes” and cost reductions.

Queen’s Wharf Exit Reduces Brisbane Revenue

Revenue associated with The Star Brisbane declined to AU$5 million from AU$15 million in the third quarter. The segment recorded an AU$12 million EBITDA loss after corporate allocations.

The decline followed completion of the first stage of The Star’s agreement with Chow Tai Fook Enterprises and Far East Consortium International. The transaction transferred The Star’s 50% interest in Queen’s Wharf Brisbane and amended the Destination Brisbane Consortium casino management agreement.

Under the revised arrangement, The Star will receive a fixed annual operator fee of AU$18 million, paid monthly, alongside performance-based incentive payments. It received AU$4.5 million during the quarter.

The company described the period as having a “lower operator fee”, pending regulatory approval of the amended agreement.

The second transaction stage concerns the Destination Gold Coast Consortium and other Brisbane assets. The parties expect to satisfy the remaining conditions during the second half of 2026 and no later than March 31, 2027.

The Star now owns all of The Star Gold Coast assets. Chow Tai Fook Enterprises and Far East Consortium will take control of the Treasury Hotel and Charlotte Street Car Park near Queen’s Wharf.

Refinancing Improves Liquidity

Completion of the first Queen’s Wharf transaction stage satisfied conditions attached to The Star’s refinancing with WhiteHawk Capital Partners.

The company completed a US$390 million secured refinancing, equivalent to approximately AU$540 million. The facility increased available liquidity by about AU$130 million after funding the required interest reserve.

Cash and cash equivalents rose to AU$267 million at June 30 from AU$120 million three months earlier.

Quarterly operating cash flow reached AU$31.8 million, helped by the release of previously escrowed Brisbane operator fees and an AU$18.1 million tax refund. Operating cash flow for the full financial year remained negative at AU$101.1 million.

Despite the refinancing and asset restructuring, The Star said its going-concern position still depends on several material uncertainties, including matters outside its control. The company could not guarantee that it would resolve all remaining issues before filing its audited fiscal 2026 statements.

The Star continues its regulatory remediation programme. The New South Wales Independent Casino Commission recently imposed AU$10 million in fines on The Star Sydney and required a further AU$5 million investment in financial crime risk-management technology.

Group CEO and Managing Director Bruce Mathieson Jnr said: “We take our obligations to abide by gaming regulations seriously and appreciate that the NICC has allowed us to pay these penalties progressively up until 30 June 2027 while we continue to invest in our technology uplift. These events occurred between December 2018 and September 2025 and prior to the commencement of the current leadership.

“We will continue to engage constructively with the NICC in respect of The Star Sydney as we work through our remediation program. I am confident that we are making progress.”

The company has also settled historical GST and withholding tax disputes with the Australian Taxation Office concerning payments to junket operators. The improved cash position will support ongoing operations while The Star continues its cost programme and regulatory work.