- 01EBITDA rebounded to $12m, up $25m year on year.
- 02Revenue rose 2% to $284m; owned-casino EBITDA reached $35m.
- 03Cash fell to $239m amid regulatory and funding risks.
The Star Entertainment Group (ASX: SGR) has returned to positive quarterly EBITDA, posting $12 million for the three months to 30 September after losses in both comparison periods.
The result represented a $25m improvement on the $13m loss a year earlier and followed a $9m loss in the June quarter, as trading strengthened at its two owned casinos.
Group revenue reached $284m, increasing 8% from the previous quarter and 2% year on year, while combined revenue at The Star Sydney and The Star Gold Coast grew 9% quarter on quarter.
The turnaround came alongside lower corporate costs, although the group remained exposed to material regulatory and financial uncertainties and recorded a statutory operating cash outflow during the quarter.
Casino Earnings Regain Ground
The Star Sydney generated $162m in revenue, up 8% from June, while segment EBITDA reached $15m against a $1m loss in the preceding quarter.
Electronic gaming machine growth supported the Sydney recovery, although softer table games and non-gaming activity tempered revenue and the closure of its Event Centre affected the annual comparison.
The Star Gold Coast delivered revenue of $117m, up 12% year on year, with segment EBITDA of $20m compared with $11m a year earlier.
Together, the owned properties produced $35m of segment EBITDA, more than double the June-quarter figure, as revenue initiatives and cost reductions gained traction.
Unallocated corporate expenses declined to $23m from $33m a year earlier, reflecting an ongoing shift towards more independent property operations.
Brisbane Managed Property Record
The Star Brisbane, which is managed rather than consolidated as an owned casino, generated $136m in property revenue, an increase of 14% from a year earlier.
Its earnings before interest, tax, depreciation, amortisation and management fees (EBITDAM) reached a record $37m, almost three times the previous corresponding period and 43% above June.
The Star itself recognised $5m in Brisbane operator-fee revenue, down from $14m a year earlier under revised management arrangements that took effect in April.
That distinction means Brisbane’s property-level revenue and EBITDAM cannot be added to the group’s consolidated figures, which include the operator fee rather than the resort’s gross trading performance.
Cash Flow and Funding Position
Cash and cash equivalents stood at $239m at 30 September, down from $267m at the end of June, with another $80m held in restricted deposits.
Net cash used in operating activities was $15.5m for the quarter, notwithstanding management’s assessment that operating free cash flow excluding one-off items had turned positive.
One-off cash movements included payment of historical underpaid casino duties and receipts relating to tax and rebate-duty settlements, complicating comparison with underlying trading.
The group maintained a refinancing facility of US$390m with WhiteHawk Capital and separately disclosed an $11.6m payment-in-kind liability it intends to convert into shares subject to shareholder approval.
Management expects financial year 2027 to deliver its first annual net operating cash inflow before one-off items in more than two years, but that outcome remains prospective.
Licences Remain Under Scrutiny
The Star Sydney casino licence remains suspended, with its appointed manager currently due to remain until 30 June 2027 unless the regulator ends the appointment earlier.
At The Star Gold Coast, the deferred licence suspension and special manager appointment extend to 31 March 2027, as does Brisbane’s external adviser arrangement.
The group continues remediation work and decentralisation while reviewing marketing, staffing, and overheads to support improved operating performance.
Despite the earnings recovery and available liquidity, The Star has warned that unresolved material uncertainties could still affect its ability to continue as a going concern at its next half-year financial assessment.
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