Key Highlights
• Statutory net loss of $307.3 million in FY26; normalised EBITDA loss of $16.1 million, an improvement from a $76.2 million loss in the prior year.
• Revenue at operating properties stabilised in Q4 FY26 following nearly two years of consecutive quarterly declines.
• Debt refinancednts of $267 million as at 30 June 2026
• Going Concern uncertainties persist, including the quantum of the AUSTRAC penalty, licence restoration, and debt covenant compliance.
The Star Entertainment Group (ASX:SGR) had released its financial results for the year ended 30 June 2026 (FY26), revealing a Business that has undergone sweeping changes in leadership, operations, and corporate structure while continuing to battle significant regulatory and financial headwinds. Combined revenue at the group’s principal properties, which had been declining for nearly two years on a quarterly basis, reached what management described as a nadir in Q3 FY26. Revenue in July 2026 was reported to be 12% higher than the Q3 FY26 monthly average, signalling a possible inflection point following the trough.
Combined revenue at The Star Sydney and The Star Gold Coast in July 2026 reached $92.4 million, representing 6% growth against the July 2025 corresponding period and an 8% improvement over the Q4 FY26 monthly average. Slots revenue recorded year-on-year growth at both properties, partially offset by continued softness in Table Games revenue and higher complimentary investment, which weighed on cash Non-Gaming revenues.
Statutory Loss and Normalised Earnings
The Star recorded a statutory net loss of $307.3 million for FY26. The normalised loss after tax was $158.9 million, excluding significant items of $144.3 million and discontinued operations of $4.1 million. The normalised EBITDA loss of $16.1 million, while still negative, was an improvement compared to the prior comparable period normalised EBITDA loss of $76.2 million. The result included operator fee revenue of $59.7 million from operating The Star Brisbane under the Casino Management Agreement with joint venture partners Chow Tai Fook Enterprises and Far East Consortium. The operator fee structure changed from April 2026 to a fixed $1.5 million per month from the previous $5.0 million per month arrangement.
Cost Reduction Program Shows Material Progress
Under the new Leadership team led by Group CEO Bruce Mathieson Jnr, appointed in December 2025 following the completion of strategic investments by Bally’s Corporation and Investment Holdings, The Star has undertaken significant cost reduction efforts. Group corporate costs were reduced by $75 million in FY26, with Q4 FY26 annualised corporate costs running $36 million below the FY26 full-year figure. Annualised Q4 FY26 Group corporate costs of $178 million represented a 38% reduction compared to FY25, down $111 million.
The average monthly free Cash FlowBurn Rate of approximately $20 million recorded in H1 2026 improved materially in the second half. Management stated it expects to begin building cash in FY27, before accounting for non-operating items, subject to the successful execution of ongoing revenue and cost initiatives.
Balance Sheet Actions and the JVP Transaction
The group completed the refinancing of its corporate debt on 7 May 2026teHawk Capital Partners, increasing available Liquidity by approximately A$130 million. As at 30 June 2026, cash and cash equivalents stood at $267 million, with total cash and deposits of $368 million including restricted deposits of $101 million
On 31 March 2026, The Star completed the first stage of the JVP Transaction, exiting its Equity interest in the Destination Brisbane Consortium and releasing its $700 million Parent Company guarantee previously provided in respect of DBC’s $1.4 billion debt facilities. The second stage, involving further asset disposals and consolidation of the Gold Coast position, is subject to separate conditions and is currently expected to be completed by 31 March 2027.
Conclusion
The Star Entertainment Group’s FY26 results illustrate a business that has meaningfully improved its cost structure and is showing early signs of revenue stabilisation, yet remains burdened by regulatory uncertainty, a history of significant losses, and documented going concern risks. The interplay between licence restoration, AUSTRAC penalty resolution, and debt covenant compliance will be central to the group’s FY27 trajectory. Investors and analysts watching this stock will need to weigh the operational progress against the material uncertainties that remain unresolved at the time of this report.
