Star Entertainment Narrows FY26 Loss As July Revenue Shows Growth

Australia’s Star Entertainment Group reported a statutory net loss of AU$307.3 million (US$220 million) for the year ended June 30, 2026. The result was an improvement from the AU$428 million (US$307 million) loss recorded a year earlier, while the company said July revenue pointed to a possible improvement in trading conditions.

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Normalized EBITDA loss narrowed to AU$16.1 million (US$11.5 million), compared with an AU$76 million (US$54.5 million) loss in FY25.

Corporate Costs Cut Down

According to Star, the FY26 financial performance was a result of an evaluation of its organizational structure, business models, and strategy. Measures such as cutting down the size of the corporation office contributed to cutting the group’s corporate costs down by 38% to AU$178 million (US$128 million).

Nonetheless, despite cost-cutting measures taken, normalized revenue decreased by 2.2% to AU$1.1 billion (US$788 million). The worst situation was in the third quarter, after which the company started to focus on customer experience and marketing.

The company said group-wide revenue in July was 12% higher than during the low-point March 2026 quarter.

July Revenue Improves

Revenue of The Star Sydney and The Star Gold Coast venues collectively was up by 6% a year ago and an 8% from the 4Q26 average. Revenue came in at AU$92.4 million (US$66.2 million), where the revenue was boosted by gaming machines.

Star said the result reflected stronger customer engagement and a shift towards growth. If the trend continues, the current quarter could deliver the highest average monthly revenue since 2Q25.

The company’s improved trading performance follows the November 2025 acquisition of a controlling stake in Star by Bally’s Corp and Investment Holdings Pty Ltd, which was intended to help reverse the group’s fortunes.

Sydney And Gold Coast Results

The Star Sydney’s gaming revenue fell by 9.1% year-on-year to AU$499.8 million (US$358 million) in FY26. The decline reflected weaker table games and the continuing effect of higher regulatory controls and casino reforms in New South Wales, including mandatory carded play and restrictions on cash use.

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The property EBITDA of the Sydney venue was down by 30.6% to AU$63.7 million (US$45.6 million).

In terms of The Star Gold Coast, gaming revenue went up by 3.2% to AU$256.4 million (US$184 million), backed by solid growth in gaming machines. Property EBITDA was up by 0.3% to AU$79.8 million (US$57.2 million).

Brisbane Fees And Financial Risks

Star generated AU$59.7 million (US$42.8 million) in operator fee revenue from The Star Brisbane. This included AU$10.2 million (US$7.3 million) held in escrow and released in March after the first stage of the joint venture transaction involving the sale of Star’s 50% stake to its Hong Kong partners.

Star is now receiving AU$4.5 million (US$3.2 million) each month to operate The Star Brisbane.

Despite the improvement in July and lower costs, Star said material uncertainty remained around its ability to continue. The company identified a possible AUSTRAC penalty for historical anti-money-laundering failures, further revenue growth and cost savings, and a return to license suitability in Sydney as important to its liquidity and financial outlook.

Recovery Efforts Continue

Group CEO and Managing Director Bruce Mathieson Jnr said the company had moved to a more accountable, property-led operating model focused on performance, customers, and responsible operations. According to the Group’s CFO and Interim Group Chief Risk Officer Charles Diao, financing and strategic transactions, along with operations improvements under new management, have strengthened its financial and risk positions.

The company continues its efforts to achieve sustainable profitable performance while managing revenues, expenses, compliance, and liquidity.

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Source: Inside Asian Gaming