Highlights

  • The Star reported FY26 normalised Revenue of AUD 1.101 billion, compared with AUD 1.125 billion in FY25.
  • The normalised EBITDA loss improved to AUD 16.1 million from a loss of AUD 76.2 million in the prior corresponding period.
  • Cash and cash equivalents stood at AUD 267 million at 30 June 2026 following refinancing and strategic transactions.
  • On 1 September 2026, Brooke Lindsay and Grant Bowie formally joined the Board as Non-Executive Directors following regulatory approvals.

The Star Entertainment Group Limited (ASX:SGR) is navigating one of the most important recovery periods in its corporate history as management works to stabilise casino operations, rebuild liquidity, reduce costs and address regulatory and governance requirements.

The group’s principal operations include The Star Sydney and The Star Gold Coast, while it also operates The Star Brisbane under a casino management agreement following changes to its ownership structure in the Destination Brisbane Consortium.

The Business spans gaming, hotels, restaurants, bars and entertainment. However, its current strategic priorities extend well beyond customer demand. Regulatory remediation, financial sustainability, Debt management and the restoration of suitability to hold casino licences remain central to the company’s longer-term outlook.

The Star’s FY26 results, released on 31 August 2026, showed continued financial pressure but also some improvement in operating trends during the second half.

FY26 Performance

For the year ended 30 June 2026, The Star reported normalised revenue of AUD 1.101 billion, down from AUD 1.125 billion in FY25.

Normalised EBITDA remained negative at AUD 16.1 million, but this represented a significant improvement from the AUD 76.2 million normalised EBITDA loss in the prior corresponding period.

Normalised EBIT was a loss of AUD 76 million compared with a loss of AUD 135 million in FY25.

The company reported a normalised loss after tax of AUD 158.9 million. After significant items and discontinued operations, statutory NPAT was a loss of AUD 307.3 million, compared with a statutory loss of AUD 428 million in FY25.

The improvement in EBITDA reflected cost reductions and operational initiatives implemented during the second half.

The Star said annualised fourth-quarter FY26 corporate costs were AUD 178 million, representing a reduction of AUD 111 million, or 38%, compared with FY25. Group corporate costs were reduced by AUD 75 million across FY26.

These reductions are important because management is seeking to create enough operating flexibility to reinvest in customer Acquisition and Marketing while moving the business toward positive cash generation.

Revenue Recovery

One of the more constructive elements of the FY26 update was evidence that revenue declines may be stabilising.

The Star said combined revenue across its principal properties reached a low point during the third quarter of FY26 before improving through the fourth quarter.

July 2026 trading provided another indication of recovery. Combined revenue from The Star Sydney and The Star Gold Coast reached AUD 92.4 million, representing growth of 6% compared with July 2025 and an 8% increase against the average monthly revenue recorded during the fourth quarter of FY26.

Management attributed the improvement partly to stronger year-on-year slot-machine revenue at Sydney and the Gold Coast.

Table Games remained softer, while non-gaming cash revenue was affected by increased complimentary Investment aimed at improving customer engagement.

For investors, the distinction between revenue recovery and sustainable profitability remains important. Higher customer activity needs to translate into adequate margins while the group continues to manage significant regulatory and financing obligations.

Liquidity Progress

Financial stability has been another major area of focus.

At 30 June 2026, The Star held AUD 267 million in cash and cash equivalents. Total cash and cash deposits were AUD 368 million when restricted deposits were included.

In May 2026, the company completed refinancing through a USD 390 million secured term Loan from WhiteHawk Capital Partners, with Maturity in May 2029.

The refinancing increased available Liquidity by approximately AUD 130 million and reduced immediate funding pressure.

Another important development was the completion of the first stage of the Destination Brisbane Consortium transaction in March 2026.

This resulted in The Star exiting its Equity interest in the consortium and being released from the AUD 700 million parent-company guarantee associated with its share of the consortium’s debt facilities.

The second stage of that transaction remains subject to conditions, with completion expected during the second half of calendar 2026 and no later than 31 March 2027.

These changes materially reshape the company’s financial structure, but liquidity remains closely tied to operating improvement and ongoing access to financing.

Brisbane Operations

The Star Brisbane continues to form part of the group’s operating footprint, though under a different economic model.

Following the restructuring of the joint venture arrangements, The Star earns operator fees for managing the integrated resort.

FY26 included AUD 59.7 million of operator fee revenue from The Star Brisbane.

The company said operating performance at the property improved during its second year. EBITDAM before operator fees nearly doubled during that period, with the monthly run-rate over the most recent three months averaging approximately AUD 13 million.

The revised casino management agreement provides for a fixed annual operator fee of AUD 18 million from April 2026, paid monthly, together with performance-based incentive fees.

The performance of Brisbane therefore remains relevant even though the group no longer holds the same equity exposure to the property.

Regulatory Focus

Regulatory remediation remains one of the biggest issues facing The Star Entertainment Group (ASX:SGR).

Management has reiterated that returning to suitability to hold casino licences remains critical to the company’s future.

The group continues to work on remediation of historical governance, risk-management and financial-crime compliance shortcomings.

At The Star Sydney, licence reinstatement remains an important objective. In Queensland, the company is also seeking Withdrawal of the deferred suspension affecting The Star Gold Coast’s casino licence.

These regulatory matters affect more than reputation. They can influence customer confidence, recruitment, operating flexibility and the company’s ability to maintain access to capital.

The FY26 accounts continue to carry a material uncertainty relating to going concern. The Star said key factors include the eventual AUSTRAC penalty, the ability to return the business to sufficient profitability to satisfy debt covenants, casino licence suitability and continued access to transactional banking services.

Board Update

The most recent substantive company update came on 1 September 2026, when The Star announced further changes to its Board.

Brooke Lindsay and Grant Bowie formally commenced as Non-Executive Directors after receiving the required regulatory and ministerial approvals.

Their appointments mean 50% of the Board is now comprised of independent directors.

The company also announced the proposed appointment of Donna Isaacs as an additional independent Non-Executive Director, subject to regulatory and ministerial approvals.

Isaacs will initially serve as an observer to the Board. Once approved, her appointment is expected to result in a majority-independent Board.

The changes reflect The Star’s continued emphasis on governance renewal as it works through its regulatory remediation program.

FY27 Focus

FY27 is likely to be defined by execution across several interconnected priorities.

Revenue recovery needs to continue at Sydney and the Gold Coast while management also maintains cost discipline.

Cash generation is equally important. The company said the average monthly free Cash Flow Burn Rate of approximately AUD 20 million in the first half of calendar 2026 had materially improved, and management expects the business to begin building cash during FY27 before non-operating items.

The Star also needs to complete the remaining stage of the Brisbane-related transaction and maintain adequate liquidity under its refinancing arrangements.

Most importantly, progress on regulatory suitability will remain central to the company’s ability to establish a sustainable operating platform.

Final Takeaway

The Star Entertainment Group’s FY26 result showed a company still under substantial financial and regulatory pressure, but with some evidence of operational improvement.

Normalised revenue was AUD 1.101 billion, while the normalised EBITDA loss narrowed considerably to AUD 16.1 million. Cost reductions, refinancing and the release of the AUD 700 million Brisbane guarantee strengthened the financial position, while July trading pointed to improving revenue momentum.

For The Star Entertainment Group (ASX:SGR), however, the turnaround remains dependent on several moving parts.

Revenue recovery, cash generation, debt compliance, completion of the Brisbane transaction and progress toward regulatory suitability will all be important.

The September Board appointments add further governance experience as the company continues rebuilding its operating and financial foundations during FY27.