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Star Entertainment Group has returned to positive earnings and operating cash flow for the first time in more than two years, helped by stronger revenue across its casino and resort portfolio and lower corporate costs.
Ahead of its annual general meeting in Sydney, the casino operator reported group revenue of $284 million for the September quarter, up 2% on the prior corresponding period, while earnings before interest, tax, depreciation and amortisation (EBITDA) improved to $12 million from a $13 million loss a year earlier.
The improvement came as revenue increased across The Star Sydney, The Star Gold Coast and the group’s Brisbane resort operations, while unallocated corporate costs fell 29% to $23 million.
Star said operating free cash flow for FY27, excluding one-off items, was positive and the company expects the financial year to mark its first period of net annual operating cash inflows before one-offs in more than two years.
Brisbane delivers record earnings
The Star Brisbane integrated resort was the standout performer, generating EBITDA of $37 million before the management fee charged to the Destination Brisbane Consortium.
That result was nearly three times the prior corresponding period and represented a record for the property.
The stronger operating performance comes as Star continues to focus on cost reductions and improving cash generation while navigating significant regulatory and financial pressures.
Star ended September with $239 million in cash and cash equivalents, down from $267 million at the end of June.
The company said it maintained sufficient liquidity and continued to improve operations, although its financial position remained subject to several material uncertainties, including matters outside its control.
Among the most significant is the pending financial penalty sought by AUSTRAC, which is pursuing a fine of up to $400 million following findings relating to anti-money laundering compliance failures at Star’s Australian casinos.
Star said these continuing matters could affect its future assessment of whether it can continue as a going concern.
Casino licences remain suspended
After a tumultuous couple of years, The Star Sydney casino licence remains suspended, with external manager Nick Weeks currently appointed until the end of June.
The deferred suspension of The Star Gold Coast casino licence and Weeks’ appointment there currently extend to the end of March, while the external advisory arrangement at The Star Brisbane also runs until the end of March.
Star said these matters would be reassessed when it prepares its half-year financial statements, although there was no guarantee they would be resolved by that time.
Star Entertainment shares were trading higher at around 13.3 cents following the update.
