The Star Entertainment Group has returned to positive group EBITDA, reporting A$12m for the first quarter of FY27 — a A$25m improvement on the prior corresponding period — as group revenue rose 2% year-on-year to A$284m for the three months to 30 September 2026, according to a report by G3 Newswire.
The turnaround was driven by the operator’s two owned and operated properties, which together generated revenue of A$279m, up 5% year-on-year. Combined segment EBITDA from those venues reached A$35m, against A$14m in the same quarter a year earlier.
The Star Sydney contributed A$162m in revenue and A$15m in EBITDA. Growth in electronic gaming machine performance was partly offset by softer table-games and non-gaming revenue at the property.
The Star Gold Coast posted revenue of A$117m and EBITDA of A$20m, with the company pointing to EGM growth and marketing activity as the main supports for the result.
Brisbane now a management contract
The group’s Brisbane exposure has changed shape materially. The Star Brisbane is now managed under a Casino Management Agreement with the Destination Brisbane Consortium, generating an operator fee of A$5m in the quarter — down 67% year-on-year following the revised terms of that agreement.
The shift follows the completion of the sale of Queen’s Wharf Brisbane. Under the arrangement, The Star could be paid as little as $1.5m a month to manage the casino, leaving the group’s earnings base concentrated in Sydney and on the Gold Coast.
Cash position and going-concern warning
Cash and cash equivalents stood at A$239m at the end of the quarter, while total cash and cash deposits, including restricted deposits, amounted to A$319m.
The company said operating free cash flow excluding one-off items was positive in the period, and that it expects FY27 to be its first year of positive annual operating cash flow before one-offs in more than two years.
That outlook is qualified. The Star cautioned that material uncertainties remain around its ability to continue as a going concern — a warning that has accompanied the group’s disclosures through its prolonged financial and regulatory difficulties.
Licences still under supervision
The regulatory overhang in both of the group’s home states is unresolved. The Star’s Sydney casino licence remains suspended, with the appointment of the manager overseeing the property extended to 30 June 2027.
In Queensland, the suspension of The Star Gold Coast’s licence remains deferred, and the term of the special manager appointed to that property runs to 31 March 2027.
Separately, former Star executives were fined A$1.1m over governance failures, underlining the scale of the conduct findings that preceded the group’s current remediation obligations.
Taken together, the quarter marks the clearest operational improvement The Star has reported in some time: a positive group EBITDA line, revenue growth at both owned properties and a lighter cost base following the Queensland divestment. Whether that is enough to carry the group through its remediation timetable — and to satisfy regulators in New South Wales and Queensland — will not be tested until well into FY27.
This article was produced with AI assistance and reviewed under the GamblingZine editorial verification process.
Sources
- The Star returns to positive group EBITDA in Q1 — Independent reporting (published 2026-11-03)
Reporting verified against the sources above; retrieval timestamps are preserved in the editorial record.