Is Star Entertainment Finally Turning the Corner After a Tough Year?
Source: Kapitales Research
Highlights:
Return to profit: The Star Entertainment Group Limited (ASX: SGR) reported an EBITDA profit of $6 million in the December quarter, at the time of writing, reversing a $13 million loss in the previous quarter.
Revenue growth: Quarterly revenue reached $301 million, at the time of writing, up 6% quarter-on-quarter.
Strong liquidity: The group ended the quarter with around $130 million in available cash, at the time of writing.
Star Shares Jump on Return to Profit
The Star Entertainment Group Limited (ASX: SGR) surprised investors after reporting a strong rebound in its December quarter performance, lifting market sentiment around the struggling casino operator. At the time of writing, Star’s share price was trading around $0.15, despite ongoing volatility in the stock.
The company reported December quarter revenue of $301 million, at the time of writing, representing a 6% increase on the previous quarter. More importantly, Star returned to profitability at the earnings level, delivering an EBITDA profit of $6 million, before significant items. This marked a sharp turnaround from an EBITDA loss of $13 million recorded in the September quarter.
What Drove the Recovery?
Management said the improvement was driven by higher customer visitation, stronger gaming volumes, and continued cost control across its operations in Sydney, Brisbane, and the Gold Coast. The company has been working to stabilise its business following regulatory scrutiny, leadership changes, and declining consumer spending over the past year. The December quarter result suggests that Star’s operational reset may finally be gaining traction, even as broader conditions in the hospitality and entertainment sector remain challenging.
Cash Position Offers Breathing Room
Star ended the quarter with approximately $130 million in available cash, at the time of writing. This liquidity is seen as crucial, as the group continues to navigate regulatory reforms, compliance costs, and softer discretionary spending by consumers. While the cash buffer provides short-term stability, analysts say the company still faces significant risks, including ongoing regulatory oversight and the need to rebuild customer trust.
Why the Market Reacted Positively
Investors welcomed the return to positive EBITDA, viewing it as a potential sign that the worst may be over for the casino operator. The quarter-on-quarter revenue growth also indicated early signs of demand recovery, particularly in premium gaming segments.
What’s Next for Star?
At the time of writing, Star’s future performance will depend on whether it can sustain earnings growth while meeting stricter compliance standards. If momentum continues into the next quarter, analysts believe the company could gradually regain investor confidence after one of the most turbulent periods in its history.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
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Is Star Entertainment Finally Turning the Corner After a Tough Year?
Highlights:
Star Shares Jump on Return to Profit
The Star Entertainment Group Limited (ASX: SGR) surprised investors after reporting a strong rebound in its December quarter performance, lifting market sentiment around the struggling casino operator. At the time of writing, Star’s share price was trading around $0.15, despite ongoing volatility in the stock.
The company reported December quarter revenue of $301 million, at the time of writing, representing a 6% increase on the previous quarter. More importantly, Star returned to profitability at the earnings level, delivering an EBITDA profit of $6 million, before significant items. This marked a sharp turnaround from an EBITDA loss of $13 million recorded in the September quarter.
What Drove the Recovery?
Management said the improvement was driven by higher customer visitation, stronger gaming volumes, and continued cost control across its operations in Sydney, Brisbane, and the Gold Coast. The company has been working to stabilise its business following regulatory scrutiny, leadership changes, and declining consumer spending over the past year. The December quarter result suggests that Star’s operational reset may finally be gaining traction, even as broader conditions in the hospitality and entertainment sector remain challenging.
Cash Position Offers Breathing Room
Star ended the quarter with approximately $130 million in available cash, at the time of writing. This liquidity is seen as crucial, as the group continues to navigate regulatory reforms, compliance costs, and softer discretionary spending by consumers. While the cash buffer provides short-term stability, analysts say the company still faces significant risks, including ongoing regulatory oversight and the need to rebuild customer trust.
Why the Market Reacted Positively
Investors welcomed the return to positive EBITDA, viewing it as a potential sign that the worst may be over for the casino operator. The quarter-on-quarter revenue growth also indicated early signs of demand recovery, particularly in premium gaming segments.
What’s Next for Star?
At the time of writing, Star’s future performance will depend on whether it can sustain earnings growth while meeting stricter compliance standards. If momentum continues into the next quarter, analysts believe the company could gradually regain investor confidence after one of the most turbulent periods in its history.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au