The Star reports narrowed FY26 loss as turnaround takes hold
In its FY26 results for the year ended 30 June 2026, The Star Entertainment Group reported a normalised EBITDA loss of $16.1 million, narrowing sharply from $76.2 million a year earlier, a 79% improvement. The statutory net loss reduced to $307.3 million from $427.9 million.
The result followed a period of significant change. New leadership took the helm across the Board and executive ranks in December 2025, and the Group completed a $300 million strategic investment from Bally’s Corporation and Investment Holdings.
Normalised revenue of $1,101.0 million held broadly stable, with total revenues at operating properties stabilising in Q4 FY26 after almost two years of quarterly declines.
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FY26 financial results at a glance
The Group’s financial scorecard showed narrowing losses on both statutory and normalised measures. Net revenue declined 2.2%, driven primarily by softness in Sydney Table Games, partially offset by slots growth across all properties.
Operating expenditure fell 7.9% to $860.4 million, reflecting cost-out initiatives including the streamlining of the corporate office. Providing balance, net funding costs rose $35.5 million, reflecting higher average debt, interest rates, and unfavourable AUD/USD movements used to revalue USD-denominated net debt.
| Metric | FY26 | FY25 | Variance |
|---|---|---|---|
| Net revenue (normalised) | $1,101.0m | $1,125.2m | (2.2%) |
| EBITDA (before sig. items) | ($16.1m) | ($76.2m) | +78.9% |
| NPAT (before sig. items) | ($158.9m) | ($161.5m) | +1.6% |
| Statutory NPAT | ($307.3m) | ($427.9m) | +28.2% |
| EPS (cents) | (6.0) | (14.9) | +59.7% |
For investors, the meaningful narrowing of losses on both bases signals early turnaround momentum, though the Group remained loss-making across the period.
The H1 FY26 results had already pointed to a turning trajectory, with the EBITDA loss narrowing 71% to -$7.6 million and January 2026 delivering a positive $4.2 million EBITDA, providing early validation that cost-out initiatives were gaining traction ahead of the critical refinancing deadline.
Property performance: Gold Coast and Brisbane offset Sydney softness
Performance diverged across the three properties, with growth at Gold Coast and Brisbane helping to offset continued pressure in Sydney.
The Star Sydney
Revenue declined 9.3% to $621.3 million, driven by a 16.4% fall in Table Games. The softness reflected NSW regulatory reforms, including mandatory carded play and restrictions on the use of cash. Segment EBITDA loss improved 31.4% to ($32.7 million) on the back of cost-out initiatives.
The Star Gold Coast
Revenue rose 2.3% to $420.0 million, supported by growth in electronic gaming machines. Segment EBITDA increased 69.7% to $37.0 million, while EBIT surged to $17.2 million from $2.3 million in the prior year.
The Star Brisbane
The Star recognised operator fee revenue of $59.7 million from operating The Star Brisbane, up 101.7% on the prior year. EBITDAM (before Operator Fee) for the integrated resort nearly doubled in its second year under The Star’s management, with the current monthly EBITDAM run-rate averaging $13 million over the past three months, described as at all-time records.
The $59.7 million operator fee revenue comprised:
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$10.2 million relating to FY25 operator fees held in escrow pending completion of Stage 1 of the JVP Transaction
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$45.0 million recognised for the nine months to 31 March 2026 at $5.0 million per month
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$4.5 million recognised in the June 2026 quarter under the revised CMA arrangement
Understanding a corporate turnaround: why cost-out and cash burn matter
The Star reported annualised Q4 FY26 corporate costs of $178 million, a reduction of $111 million or 38% compared to FY25. The average monthly free cash flow burn rate of approximately $20 million in H1 has materially improved, with the Group now expecting to start building cash in FY27, before non-operating items.
Group CEO and Managing Director Bruce Mathieson Jnr
“We have moved to a more accountable, property-led operating model and a renewed focus on performance, customers, and responsible operations.”
Balance sheet strengthened: refinancing and JVP milestones
Two major structural transactions completed during the period strengthened the Group’s financial position. On 7 May 2026, The Star completed a refinancing with a USD $390 million secured term loan due May 2029 from WhiteHawk Capital Partners, increasing available liquidity by approximately A$130 million.
On 31 March 2026, the Group completed Stage 1 of the JVP Transaction, being the exit from DBC. The parent company guarantee previously provided in respect of The Star’s 50% of DBC’s $1.4 billion debt facilities was fully released, eliminating the $700 million guarantee.
The Group held cash and cash equivalents of $267 million at 30 June 2026, with total cash and deposits of $368 million.
Key balance sheet developments included:
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Debt refinanced via a USD $390 million facility, adding approximately A$130 million in liquidity
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The $700 million DBC guarantee eliminated through JVP Transaction Stage 1
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Net debt reduced to $189 million from $207 million
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Revised CMA from 1 April 2026: a fixed $18 million annual operator fee plus performance-based incentive fees
Trading momentum: July 2026 signals inflection
Trading in July 2026 provided early evidence of recovery. Combined revenue for The Star Sydney and The Star Gold Coast reached $92.4 million, representing 6% growth on the July 2025 prior comparable period and an improvement of 8% compared to the Q4 FY26 monthly average.
Combined revenue at the two properties reached a nadir in Q3 FY26. July 2026 was 12% above the Q3 FY26 monthly average and, if sustained, would represent the highest monthly average since Q2 FY25.
By property, The Star Sydney recorded 3% year-on-year growth and 8% sequential growth. The Star Gold Coast delivered 10% year-on-year growth and 7% sequential growth, described as its best result in two years. The improvement was driven by strong slots growth, partially offset by softness in Table Games and Non-Gaming revenues, the latter reflecting increased complimentary investment.
What’s next: outlook and the road to suitability
The Group expects to start building cash in FY27, before non-operating items, supported by continued cost-out into FY27 and a transition to a direct-attribution corporate cost methodology.
Stage 2 of the JVP Transaction is targeted for completion during 2H CY2026 and by no later than 31 March 2027, subject to a separate set of conditions precedent.
On the return to suitability, The Star Sydney lodged a submission on its suitability to hold a casino licence with the NICC in August 2026, and The Star Gold Coast lodged its submission with the OLGR in July 2026. The Manager’s term of appointment for The Star Sydney and the Special Manager’s term of appointment for The Star Gold Coast both currently extend to 30 September 2026.
Material uncertainties investors should note
The independent auditor’s report includes material uncertainties relating to going concern and an emphasis of matter on regulatory and legal provisions, other creditors and contingent liabilities. The Star stated there continue to be material uncertainties that cast significant doubt as to the Group’s ability to remain a going concern.
The key interdependent near-term risks identified include:
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The quantum and timing of the AUSTRAC penalty and other provisions and contingencies
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The Group’s ability to implement FY27 revenue growth and cost-out initiatives sufficient to satisfy its external debt covenants
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The return to suitability, including restoration of The Star Sydney’s casino licence and withdrawal of the suspension of The Star Gold Coast’s casino licence
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The Group’s ability to maintain its transactional banking services
The Star noted there is no certainty that each of these matters can be satisfactorily resolved in a sufficiently timely manner. These uncertainties sit alongside the genuine operational and financial progress already achieved during the period.
Group Chief Financial Officer and Interim Group Chief Risk Officer H.C. Charles Diao
“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.”
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