The Star Entertainment Group (ASX: SGR) has returned to positive quarterly EBITDA, posting $12 million for the three months to 30 September after losses in both comparison periods.
The result represented a $25m improvement on the $13m loss a year earlier and followed a $9m loss in the June quarter, as trading strengthened at its two owned casinos.
Group revenue reached $284m, increasing 8% from the previous quarter and 2% year on year, while combined revenue at The Star Sydney and The Star Gold Coast grew 9% quarter on quarter.
The turnaround came alongside lower corporate costs, although the group remained exposed to material regulatory and financial uncertainties and recorded a statutory operating cash outflow during the quarter.
Casino Earnings Regain Ground
The Star Sydney generated $162m in revenue, up 8% from June, while segment EBITDA reached $15m against a $1m loss in the preceding quarter.
Electronic gaming machine growth supported the Sydney recovery, although softer table games and non-gaming activity tempered revenue and the closure of its Event Centre affected the annual comparison.
The Star Gold Coast delivered revenue of $117m, up 12% year on year, with segment EBITDA of $20m compared with $11m a year earlier.
Together, the owned properties produced $35m of segment EBITDA, more than double the June-quarter figure, as revenue initiatives and cost reductions gained traction.
Unallocated corporate expenses declined to $23m from $33m a year earlier, reflecting an ongoing shift towards more independent property operations.
