Key Highlights

  • Star completed a $300 million Equity Investment from Bally's and Investment Holdings during FY26
  • Normalised EBITDA loss improved to $16.1 million from a $76.2 million loss in FY25
  • Statutory net loss for the year totalled $307.3 million
  • Group corporate costs were reduced by $75 million, with Q4 FY26 annualised costs running $36 million below the FY26 level

Financial Performance

The Star Entertainment Group (ASX:SGR) reported normalised Revenue of $1,101.0 million for the financial year ended 30 June 2026, with a normalised EBITDA loss before significant items of $16.1 million, an improvement on the prior comparable period's loss of $76.2 million. The company's statutory net loss for the year was $307.3 million, while its normalised loss after tax was $158.9 million, a figure that excludes significant items of $144.3 million and losses from discontinued operations of $4.1 million.

Leadership and Operational Changes

The Star said it appointed new Leadership at board and senior executive level in December 2025 and recruited new Property Chief Executive Officers across all of its properties. The company said it implemented operational initiatives during the year, including increased Marketing spend and a renewed focus on customer experience, and noted that total revenues across its operating properties stabilised in the fourth quarter of FY26 after almost two years of quarterly declines.

Cash Flow and Balance Sheet

Group corporate costs were reduced by $75 million during FY26, with the annualised run-rate for the fourth quarter sitting $36 million below the full-year FY26 level. The company said its average monthly free Cash Flow Burn Rate of $20 million in the first half of 2026 had since improved, and it expects to begin building cash in FY27 before non-operating items. The Star refinanced its Debt during the year and held $267 million in cash and cash equivalents at 30 June 2026.

The Star Brisbane and DBC Transaction

During the year, the company completed the first stage of a transaction with its Destination Brisbane Consortium joint venture partners, Chow Tai Fook Enterprises and Far East Consortium International, eliminating The Star's $700 million guarantee on DBC debt. Following the exit of its equity interest in the DBC integrated resort joint venture, Treasury Brisbane operations were reclassified as a discontinued operation, with FY25 comparative figures restated accordingly.

The company recognised operator fee revenue of $59.7 million from operating The Star Brisbane under the amended Casino Management Agreement, which formed part of the broader transaction. The Star Brisbane's EBITDAM before Operator Fee nearly doubled during its second year of operation under The Star's management, with the property recording a monthly run-rate averaging $13 million over the past three months, described by the company as an all-time high.

Trading Update

The Star reported combined July 2026 revenue for The Star Sydney and The Star Gold Coast of $92.4 million, representing growth of 6 per cent on July 2025 and an 8 per cent improvement compared with the Q4 FY26 monthly average. The company attributed the improvement to year-on-year growth in slots revenue at both properties, partly offset by softness in table games and non-gaming revenue linked to increased complimentary spending.

Conclusion

The Star's FY26 results reflect a narrower operating loss following the completion of its equity investment from Bally's, leadership changes and cost reduction measures, alongside continued softness in table games revenue at The Star Sydney. With The Star Brisbane recording record monthly Earnings under new management and group revenue trends improving into July 2026, the company said it expects to begin building cash in FY27, before non-operating items.