Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
The Star Entertainment Group Reports AU$12 Million Quarterly EBITDA Profit as Turnaround Gains Momentum
Highlights:
Quarterly Results Signal Operational Improvement
The Star Entertainment Group Limited (ASX: SGR) reported improved operating performance for the first quarter of FY27, supported by stronger revenue at its Sydney and Gold Coast properties and ongoing cost-reduction initiatives. In its quarterly activities report released on 27 October 2026, the company recorded consolidated revenue of AU$284 million for the three months ended 30 September 2026, up 2% from the previous corresponding period and 8% from the preceding quarter.
Group EBITDA reached AU$12 million, representing a AU$25 million improvement from the AU$13 million loss recorded in Q1 FY26. The company also improved on its Q4 FY26 performance, when it recorded an EBITDA loss of AU$9 million.
Revenue across The Star Sydney and The Star Gold Coast advanced 9% compared with the previous quarter, reaching AU$279 million. This marked the first year-on-year quarterly revenue growth at the two properties since the company began quarterly reporting in September 2024. Shares were quoted at AU$0.130, up AU$0.015 or 13.043%, based on the supplied market data.
Sydney and Gold Coast Properties Drive Growth
The Star Sydney generated revenue of AU$162 million during the quarter, an 8% increase from the previous quarter. Its segment EBITDA improved to AU$15 million, compared with AU$3 million in the prior corresponding period, reflecting more stable revenue and improved cost efficiency.
The Star Gold Coast delivered revenue of AU$117 million, up 9% quarter-on-quarter and 12% year-on-year. Segment EBITDA increased to AU$20 million from AU$11 million a year earlier, supported by stronger electronic gaming machine revenue and marketing initiatives. Meanwhile, The Star Brisbane, which the group operates under a management agreement, recorded EBITDAM of AU$37 million before the operator fee. This was nearly three times the previous corresponding period's AU$13 million and represented a record result for the managed integrated resort.
Cost Controls and Cash Position
The group reported unallocated corporate costs of AU$23 million, down AU$10 million, or 29%, year-on-year. Management said cost-reduction measures and the decentralisation of operational responsibilities were continuing, with savings intended to help fund customer-focused marketing initiatives.
Operating free cash flow, excluding one-off items, was positive during the quarter. However, reported net cash used in operating activities was AU$15.5 million. Cash and cash equivalents totalled AU$239 million at 30 September 2026, compared with AU$267 million at 30 June 2026.
Regulatory Challenges Remain
Despite the improved financial performance, regulatory challenges continue. The Star Sydney casino licence remains suspended, with the manager's appointment extended to 30 June 2027 unless terminated earlier. Queensland regulatory arrangements for The Star Gold Coast and The Star Brisbane also remain in place into 2027. The company reported that more than 85% of its remediation plan milestones had been completed, while acknowledging that further work is required to restore regulatory confidence.
Note: All data presented is based on information available at the time of writing.
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