The Star narrows losses 96% to AU$1M, driven by cost cuts

The Star Entertainment Group reported an EBITDA loss of AU$1 million ($720,000) for the quarter ended March 31st, 2026, narrowing losses by 96 percent year-on-year, according to an ASX filing.

Revenue for the period totaled AU$266 million ($191.4 million), down 12 percent quarter-on-quarter and 1 percent compared with the prior corresponding period. 

The AU$23 million ($16.5 million) year-on-year improvement in EBITDA was attributed to cost-saving initiatives and higher operator fee revenue, although results were impacted by seasonal softening and lower gaming visitation in Sydney.

The company noted that second-quarter (2QFY26) results included an AU$11 million ($7.9 million) operator fee revenue true-up related to The Star Brisbane, affecting quarter-on-quarter comparability.

At The Star Sydney, revenue declined 10 percent from the previous quarter to AU$147 million ($105.8 million) and fell 9 percent year-on-year. EBITDA loss narrowed to AU$4 million ($2.9 million), from AU$9 million in the prior corresponding period.

The group cited continued softness in table games, with average daily revenue down 20 percent since the full implementation of mandatory carded play and AU$5,000 ($3,594) daily cash limits in October 2024.

The Star Gold Coast generated revenue of AU$101 million ($72.7 million), down 6 percent quarter-on-quarter but up 5 percent year-on-year. EBITDA rose to AU$8 million ($5.8 million), supported by stronger volumes in electronic gaming machines and hospitality, partially offset by softer table game performance.

For The Star Brisbane, the group reported AU$15 million ($10.8 million) in operator fee revenue under its casino management agreement, following the completion of its exit from the Destination Brisbane Consortium joint venture on April 1st, 2026. After allocating corporate costs, the segment recorded an EBITDA loss of AU$4 million ($2.9 million).

Available cash stood at AU$90 million ($64.7 million) as of March 31st, 2026. The group has entered into a binding commitment letter with funds associated with WhiteHawk Capital Partners to refinance its existing debt and provide additional liquidity. It aims to complete the refinancing by May 15th, 2026, in line with conditions tied to lender waivers.

The company said its ability to continue as a going concern remains subject to material uncertainties, despite progress on refinancing and strategic initiatives.