The Star Entertainment Group swung back to a positive group EBITDA in the September quarter, but regulators in New South Wales and Queensland have told the operator its casinos will stay under external oversight well into 2027.
The ASX-listed company reported group EBITDA of A$12 million for the first quarter of FY27, against a loss of A$13 million a year earlier and a A$9 million loss in the June quarter, according to its quarterly activities report. Revenue came in at A$284 million, 2% higher year on year and 8% above the previous quarter.
Sydney and Gold Coast grow together for the first time
The two wholly owned properties generated A$279 million in combined revenue, up 5% on the prior corresponding period. Star said this was the first year on year rise for the pair since it began filing quarterly reports with the September 2024 quarter. Electronic gaming machines drove most of the gain, helped by new revenue and marketing programmes.
The Star Sydney posted revenue of A$162 million and property EBITDA of A$15 million, while The Star Gold Coast lifted revenue 12% to A$117 million and almost doubled EBITDA to A$20 million. Gaming taxes and levies across the group rose to A$70 million. At The Star Brisbane, which Star now manages rather than co-owns, EBITDAM reached A$37 million, a record for the venue, although the operator fee Star collects fell 67% to A$5 million under the amended management agreement.
Unallocated corporate costs dropped A$10 million to A$23 million. Cash and cash equivalents stood at A$239 million on September 30, down from A$267 million at the end of June, and the company again flagged material uncertainties that could affect its going concern assessment. That warning has hung over the group since it cut its FY26 statutory loss to $220M.
Licence suspensions stay in place
Group CEO Bruce Mathieson Jnr told the annual general meeting that the NSW Independent Casino Commission has advised the suspension of The Star Sydney licence will continue for now, and that the appointed Manager will remain until June 30, 2027 unless the NICC ends the role sooner. The update follows the NICC’s position last month that the Star Sydney licence remains suspended.
In Queensland, the state government and its Commissioner for Liquor and Gaming confirmed the suspension of The Star Gold Coast remains deferred and its Special Manager has been extended, while the External Advisor at The Star Brisbane must stay in place until March 31, 2027.
“Whilst this outcome is disappointing, we understand that returning to suitability is not defined by a single milestone,” Mathieson said in the published AGM addresses. He said more than 85% of the remediation plan milestones have been completed and that “the momentum has continued in October.”
Shareholders back Bally’s share issue
Chairman Soo Kim, who joined the board after Bally’s Corporation and Investment Holdings took control, told investors that “if the reporting is to be believed, this is my first and last Annual General Meeting” of the group. He said the cash balance was now about A$200 million and argued that “the excesses of the past are in the past” on anti-money laundering and safer gambling.
Every resolution passed on a poll, according to the AGM results lodged with the ASX. The issue of ordinary shares to Bally’s received 99.50% support and the issue to Investment Holdings 99.67%, while Kim was elected as a director with 99.88% of votes cast. The remuneration report passed with 96.11%.
