Star Entertainment Posts A$12 Million Q1 FY27 EBITDA as Sydney and Gold Coast Return to Growth
The Star Entertainment Group has reported a return to group profitability for the first quarter of FY27, with Group EBITDA of A$12 million for the three months ended 30 September 2026, a A$25 million improvement on the prior comparative period. The result, released to the ASX on 27 October 2026, marks one of the clearest operational recovery signals the company has produced since its regulatory troubles began.
The headline number is modest in absolute terms, but its direction is what matters. For the first time since The Star’s quarterly reporting obligations commenced in the quarter ended September 2024, its two owned properties have delivered combined year on year revenue growth, suggesting the operator’s cost and marketing initiatives are beginning to show up in the numbers.
How The Star Entertainment Swung Back to Group EBITDA
Q1 FY27 consolidated revenue came in at A$284 million, up 2% on the prior comparative period and 8% on the last quarter. Against that, Group EBITDA of A$12 million compares with an EBITDA loss of A$13 million a year earlier and a A$9 million loss in the preceding quarter. Gaming taxes and levies were A$70 million and operating expenses were A$202 million for the quarter.
The company attributes the improvement to revenue growth at its owned properties combined with ongoing cost savings initiatives, and to a 29% year on year reduction in unallocated corporate costs, which fell to A$23 million.
Sydney and Gold Coast Gaming Revenue Drives the Turnaround
The recovery is concentrated in the two properties The Star owns outright. The Star Sydney and The Star Gold Coast posted combined revenue of A$279 million, up 5% on the prior comparative period and 9% on the last quarter, which the company reports as the first quarterly year on year growth for the pair since reporting began. Combined segment EBITDA for the two reached A$35 million, up 164% on the prior year.
The Star Sydney contributed revenue of A$162 million and segment EBITDA of A$15 million, a A$12 million improvement on the prior year, driven by electronic gaming machine growth and partially offset by softer table games and non-gaming revenue. The Star Gold Coast delivered revenue of A$117 million and segment EBITDA of A$20 million, which the company says almost doubled on the prior year, increasing by A$9 million on the back of stronger gaming revenue and increased marketing and promotional activity.
What the Amended Brisbane Operator Fee Means for The Star
The Star Brisbane, which the company manages under a Casino Management Agreement with the Destination Brisbane Consortium, tells a more nuanced story. Operator fee revenue fell to A$5 million, down 67% on the prior year, reflecting the amended fee that took effect from 1 April 2026 following completion of Stage 1 of the JVP Transaction. The precise operator fee for the quarter was A$4.5 million, against A$13.8 million a year earlier.
On an operating basis, however, the managed resort performed strongly. Its EBITDAM, measured before The Star’s operator fee, was A$37 million, which the company describes as nearly triple the prior year and an all-time record. The two measures reflect the gap between what The Star earns as operator and how the resort itself is trading.
The Going-Concern Question Still Hanging Over the Casino Operator
Set against the operational progress is a risk the company itself continues to disclose. The Star stated that it maintains sufficient liquidity and continues to improve operations, but that this is subject to a number of material uncertainties, some outside its control, and that as at the date of the announcement there are continuing matters which are material and may impact its future assessment of its ability to continue as a going concern. The company added that there is no assurance these uncertainties will be resolved by the time it files its half-yearly financial statements.
The cash position reflects that pressure. Cash and cash equivalents stood at A$239 million at 30 September 2026, down from A$267 million at 30 June 2026, with net cash used in operating activities of A$15.5 million for the quarter. The group’s casino licences also remain under regulatory control: the Sydney licence is suspended with the Manager’s term extending to 30 June 2027, while the Gold Coast and Brisbane sites operate under a Special Manager and External Adviser respectively, both to 31 March 2027.
What Comes Next for The Star in the Regulated Gaming Market?
The quarter gives The Star something it has lacked for two years, which is evidence that its owned properties can grow revenue and generate meaningful EBITDA while corporate costs come down. The company expects FY27 to be the first year in more than two years in which it generates net annual operating cash inflows before one-off items, a claim the next two quarters will test. For operators and investors tracking the sector, the signal is that regulatory remediation and commercial recovery can advance in parallel, but the unresolved going-concern matters mean the turnaround is not yet secure. The number to watch is not the next EBITDA print but whether the balance sheet stabilises alongside it.
Source: The Star Entertainment Group
