The Star Entertainment Group reported a significant improvement in quarterly EBITDA loss alongside stable revenue, completing key joint venture exit and refinancing milestones that boosted liquidity to $267 million.
- Q4 FY26 revenue steady at $265 million
- EBITDA loss narrowed to $8 million from $27 million a year ago
- First stage exit from Destination Brisbane Consortium completed
- US$390 million refinancing boosted liquidity by A$130 million
- Ongoing cost-cutting and regulatory approvals remain key focus
EBITDA Loss Narrows Sharply Despite Revenue Dip
The Star Entertainment Group (ASX:SGR) delivered a mixed but cautiously encouraging quarterly performance for Q4 FY26, reporting revenue of $265 million, largely unchanged from the previous quarter but down 2% year-on-year. More notably, the company slashed its EBITDA loss to $8 million, a 70% improvement from the $27 million loss reported in Q4 FY25. This improvement largely reflects aggressive cost savings and operational efficiencies implemented across the group.
However, the EBITDA loss widened compared to the preceding quarter’s $1 million loss, indicating some volatility in profitability as the company navigates ongoing market and regulatory challenges.
Mixed Performance Across Key Properties
The Star Sydney showed signs of stabilisation with a 2% revenue increase from Q3 FY26, although revenue remains 7% below the prior year, weighed down by soft table games and non-gaming segments. Notably, since mandatory carded play and $5,000 daily cash limits were fully implemented in October 2024, average daily revenue has declined by 20%.
The Star Gold Coast emerged as the standout performer, posting a 6% revenue increase quarter-on-quarter and a substantial 12% gain year-on-year, driven by a 21% rise in gaming revenue across both table games and electronic gaming machines.
The Star Brisbane’s operator fee revenue plunged 70% from the prior quarter to $5 million, reflecting the exit from the Destination Brisbane Consortium (DBC) joint venture and an amended casino management agreement (CMA) that awaits regulatory approval. The Treasury Brisbane casino remains closed, with only minor revenue contributions from the hotel and car park operations.
Strategic Joint Venture Exit and Refinancing Bolster Financial Position
The company completed the first stage of its exit from the DBC joint venture in April 2026, shedding its 50% ownership and releasing its $700 million share of the $1.4 billion debt guarantee. This milestone reduces the Group’s financial risk and is expected to conclude the second stage by March 2027, pending regulatory and contractual conditions.
In May 2026, The Star secured a US$390 million ($568 million) refinancing facility from WhiteHawk Capital Partners, replacing its previous syndicated debt and unlocking approximately A$130 million in additional liquidity. This refinancing includes an interest reserve account and covenants designed to support the Group’s ongoing operations and debt servicing requirements. The facility matures in May 2029, with quarterly amortisation starting in March 2027.
Cost Reduction Initiatives and Regulatory Uncertainties Persist
The Star’s new leadership team continues to drive cost-out measures, including streamlining the corporate office and exploring reductions in indirect costs and supplier expenses across its properties. Operating expenses in Q4 FY26 held steady at $206 million, down 11% from the prior year, despite increased marketing spend and seasonal labour costs.
Despite these improvements, The Star’s ability to continue as a going concern remains subject to several material uncertainties, including pending regulatory approvals for the amended Brisbane CMA and the completion of the second stage of the joint venture exit. The company acknowledges these risks will be reassessed in its upcoming annual audited financial statements, with no guarantee of resolution by that time.
Board Changes and Licence Status Updates
The Board welcomed two new non-executive directors, Brooke Lindsay and Grant Bowie, both pending regulatory and ministerial approvals. The company’s casino licences in Sydney and Gold Coast remain suspended or deferred, with management terms extended to September 2026. Engagement with regulators continues as The Star seeks to resolve these licensing matters.
Cash and cash equivalents stood at $267 million at quarter-end, including $17 million in cage cash, providing a substantial liquidity buffer as The Star navigates its restructuring and regulatory landscape.
Bottom Line?
The Star’s improved EBITDA and liquidity cushion offer breathing room, but pending regulatory approvals and the completion of its joint venture exit remain critical hurdles.
Questions in the middle?
- Will regulatory authorities approve the amended Brisbane casino management agreement and operator fee structure?
- Can The Star sustain EBITDA improvements amid ongoing licence suspensions and market headwinds?
- How will the completion of the second stage of the joint venture exit impact the Group’s capital structure and operational focus?