Star Entertainment Reports AU$12 Million EBITDA in Q1 FY27

Star Entertainment Group recorded an EBITDA of AU$12 million during the first quarter of fiscal year 2027, marking a return to profitability. This performance reflects increased revenue from its electronic gaming machines in Sydney and the Gold Coast, alongside a reduction in operational costs.

What Happened

Star Entertainment Group achieved an EBITDA of AU$12 million (approximately $8.4 million) in the first quarter of the FY27 financial year, a significant shift from the AU$13 million (approximately $9.1 million) loss reported in the previous year, according to iGaming Today. This positive result follows a period of cash outflows and continued regulatory restrictions faced by the group. The improvement in financial performance is primarily driven by enhanced earnings from electronic gaming machines at the company’s Sydney and Gold Coast casinos, coupled with a decrease in operational expenditures.

Combined revenue across the Sydney and Gold Coast properties rose by 5% year-on-year and 9% quarter-on-quarter, reaching AU$279 million (approximately $194.6 million). This marks the first year-on-year revenue increase since mandatory reporting commenced in the September 2024 quarter, as reported by iGaming Today. The company attributed the growth in gaming machine revenue to focused marketing and promotional initiatives. Despite these improvements, the group continues to experience cash outflows, with net operating outflows of AU$15.5 million (approximately $10.8 million) reported for the quarter, including non-recurring items such as historical casino duty payments and tax receipts.

Key Details

• Star Entertainment Group generated AU$12 million (approximately $8.4 million) in EBITDA for Q1 FY27, compared to a loss of AU$13 million (approximately $9.1 million) in the prior year, according to iGaming Today.
• Combined revenue from the Sydney and Gold Coast properties increased by 5% year-on-year and 9% from the preceding quarter, reaching AU$279 million (approximately $194.6 million), as stated by iGaming Today.
• Gold Coast revenue climbed 12% to AU$117 million (approximately $81.6 million), with its property EBITDA rising 92% to AU$20 million (approximately $14.0 million), according to iGaming Today.
• Unallocated corporate costs decreased by 29% to AU$23 million (approximately $16.0 million), with further savings planned for additional marketing investment, iGaming Today reported.

Why It Matters

The return to positive EBITDA for Star Entertainment Group in Q1 FY27, as detailed by iGaming Today, signifies a notable financial turnaround after a period of losses. This shift indicates the potential effectiveness of the company’s strategies in enhancing gaming machine revenue through marketing and promotional efforts, as well as its success in reducing corporate operational costs. Chairman Soo Kim noted a shift in authority and accountability towards individual property teams, decentralizing operational control to allow property management to respond more effectively to local market conditions, while corporate functions maintain oversight of remediation, legal, and compliance matters. This operational restructuring, combined with improved trading performance, suggests a concentrated effort to stabilize the business amidst ongoing regulatory scrutiny and material uncertainties regarding the group’s ability to continue as a going concern, despite completed refinancing efforts.

What’s Next

Star Entertainment Group anticipates achieving its first annual net operating cash inflow in over two years during FY27, according to iGaming Today. CEO Bruce Mathieson Jnr reported that the improvement in trading has extended into October. Despite these positive financial indicators, casino oversight arrangements remain in place. Sydney’s casino license suspension and the term of its appointed manager have been extended to June 30, 2027. Similarly, the Gold Coast’s license suspension remains deferred with its special manager continuing until March 31, 2027, and Brisbane’s external adviser appointment has also been extended to March 31, 2027, as reported by iGaming Today.