Star Entertainment Turnaround Progress
Star Entertainment narrows losses and stabilizes revenues following restructuring and cost reductions
Anonymous
Key Points
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July combined revenue at The Star Sydney and Gold Coast properties rose 6% year-on-year to A$92.4 million, driven by robust slot-machine growth, signaling improving momentum despite Sydney table games softness.
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Normalised loss after tax for FY26 was $158.9 million, while normalised EBITDA loss narrowed to $16.1 million, highlighting early turnaround despite ongoing losses on a normalised basis.
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The Star Brisbane integrated resort’s EBITDAM nearly doubled in its second year under The Star’s management, with a monthly run rate of about $13 million at record levels.
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Operating expenditure declined 7.9% to $860.4 million as part of the cost-out program, including the streamlining of the corporate office.
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New leadership took over across the Board and executive ranks in December 2025 as part of the governance overhaul.
Star Entertainment narrowed its losses sharply in fiscal 2026, reporting a normalised EBITDA loss of A$16.1 million versus A$76.2 million a year earlier. The Australian casino operator posted a statutory net loss of A$307.3 million due to regulatory and debt costs, but underlying revenue stabilised at around A$1.101 billion as the company's turnaround efforts began to take hold, according to Investing.com.
Slots Growth Offsets Sydney Table Games Weakness
Star Entertainment's Gold Coast and Brisbane properties powered revenue growth in recent months, with combined July revenue from Sydney and Gold Coast climbing 6% year-on-year to A$92.4 million. The gain came entirely from robust slot-machine performance, as Sydney's table games remained soft, Investing.com reported.
Brisbane Resort Nearly Doubles Earnings in Second Year
The Star Brisbane integrated resort showed remarkable momentum under The Star's management. The property's EBITDAM nearly doubled in its second year of operation, reaching a monthly run rate of about A$13 million at record levels, signalling strong performance in the company's newest major venue.
Cost Cuts and Strategic Investment Stabilise Balance Sheet
The company executed major cost reductions, cutting operating expenditure by 7.9% to A$860.4 million through headcount and corporate office streamlining totalling roughly A$75 million. A strategic A$300 million investment from Bally's Corporation and Investment Holdings, combined with debt refinancing and elimination of a A$700 million Destination Brisbane guarantee, strengthened liquidity to A$267 million in cash and equivalents.
New Leadership and Regulatory Headwinds Continue
Star Entertainment installed new leadership across the board and executive ranks in December 2025 as part of its governance overhaul. Despite early turnaround signs, investors remain cautious—shares fell 1.9% after results—as regulatory scrutiny and licensing challenges persist. The company still faces going-concern considerations despite improved normalised metrics.
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