Australia’s Star Entertainment Group has reported a AU$307.3 million (US$220 million) statutory net loss for the year ended 30 June 2026, reflecting the challenging trading conditions and ongoing regulatory compliance requirements the company continues to face.
However, the loss represented an improvement over the AU$428 million (US$307 million) loss reported a year earlier, with a normalized EBITDA loss of AU$16.1 million (US$11.5 million) also narrowed from its AU$76 million EBITDA loss (US$54.5 million) in FY25.
This follows a comprehensive review of the group’s resourcing structure, operating model and strategic priorities and the implementation of various cost-out and operational efficiency initiatives – including a major reduction of its corporate office – which resulted in a 38% decline in group corporate costs to AU$178 million (US$128 million).
Star also pointed to stabilization of its gaming business in recent months, with combined July revenue at The Star Sydney and The Star Gold Coast rising by 6% year-on-year and 8% on the 4Q26 (April to June) monthly averages to AU$92.4 million (US$66.2 million). This, the company explained, was driven by slots growth and reflects “ongoing improvement in customer engagement and inflection to growth.”
Star added that, should the trend continue, this current quarter would achieve the highest average monthly revenues since 2Q25.
While Star’s cost savings were a feature of its FY26 results, released Monday morning, the company still reported a slight 2.2% fall in normalized revenue to AU$1.1 billion (US$788 million), with the lowest point reached in Q3.
Since then, Star said it has given significant focus and priority towards improving the patron experience and marketing efforts with a view to reinvigorating growth. The company noted that, group-wide, revenue in July was 12% higher than in the low-point March 2026 quarter.
This follows the November 2025 acquisition by Bally’s Corp and Investment Holdings Pty Ltd of a controlling stake in Star with a view to reversing the company’s fortunes.
“We have moved to a more accountable, property-led operating model and a renewed focus on performance, customers and responsible operations,” said Group CEO and Managing Director, Bruce Mathieson Jnr.
“Our renewed focus on our customers has included improving service standards, strengthening customer engagement, enhancing our offerings and creating more compelling reasons for people to choose The Star.
“The Group has successfully refinanced its corporate debt and continued the work of strengthening its balance sheet with a strong liquidity position. These achievements have provided greater stability and a stronger foundation for the future.
“Returning to suitability remains critical to our future, and the work required to achieve that objective has and is being increasingly embedded in how we operate every day.
“We have welcomed many new leaders to The Star over the past year, bringing fresh perspectives, deep industry experience and a shared commitment to improving patron experience, profitable operating performance and responsible operations.”
By property, The Star Sydney saw its gaming revenue decline by 9.1% year-on-year to AU$499.8 million (US$358 million) in FY26, reflecting softer table games driven by the ongoing impact of uplifted regulatory controls and casino operation reforms in New South Wales, such as mandatory carded play and restrictions on the use of cash. Property EBITDA fell 30.6% to AU$63.7 million (US$45.6 million).
Conversely, gaming revenue at The Star Gold Coast grew by 3.2% to AU$256.4 million (US$184 million), primarily on strong growth in gaming machines, with Property EBITDA up 0.3% to AU$79.8 million (US$57.2 million).
Star also generated AU$59.7 million (US$42.8 million) in operator fee revenue from The Star Brisbane, which included AU$10.2 million (US$7.3 million) held in escrow and released in March following completion of the first stage of the joint venture transaction that has seen Star offload its 50% stake to its Hong Kong partners.
Under that agreement, Star is now receiving AU$4.5 million (US$3.2 million) monthly from those parters to act as The Star Brisbane’s operator.
Despite some green shoots, Star acknowledged in its FY26 results release that there remains ongoing material uncertainty around its ability to continue, with a looming AUSTRAC penalty for historical AML failures, the ability to successfully implement further revenue growth and cost savings and a return to license suitability in Sydney all described as critical to the group’s liquidity and financial outlook.
Charles Diao, Star’s Group Chief Financial Officer and Interim Group Chief Risk Officer, said, “Through the completion of various financing and strategic transactions, along with critical operational improvements implemented by new leadership, The Star is materially improved in its financial position and risk posture.
“We see the clear progress that we are making in effecting the operational turnaround at The Star and are confident that we have begun the process of recovery towards the sustainable and profitable financial performance from a few years past.”
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