The Star Returns to Positive Quarterly Earnings, but Financial Risks Remain

Australian casino operator The Star Entertainment Group has reported positive quarterly earnings for the first time in a year, offering an encouraging sign after prolonged financial difficulties. The company recorded A$12 million in EBITDA for the three months ending 30 September 2026, reversing a A$13 million loss a year earlier. However, its latest financial report shows that cash pressures and regulatory uncertainty continue to threaten its recovery.

Casino Revenue Helps the Star Return to Positive EBITDA

The Star released its quarterly financial results on 27 October, reporting group revenue of A$284 million, up 2% year on year and 8% from the previous quarter.

Its A$12 million EBITDA result compares with losses of A$13 million in September 2025 and A$9 million in June 2026.

EBITDA measures earnings before interest, tax, depreciation and amortisation. It is not the same as net profit.

The improvement reflects stronger gaming revenue and lower operating expenses, particularly at the company's Sydney and Gold Coast properties.

The Star's Quarterly Financial Performance 

Source: The Star Entertainment Group, quarterly activities report, 27 October 2026.

Sydney and Gold Coast Casinos Lead Recovery

The Star Sydney generated A$162 million in revenue and A$15 million in EBITDA, compared with A$3 million in EBITDA a year earlier.

The Star Gold Coast recorded A$117 million in revenue and A$20 million in EBITDA, almost doubling its previous year's result.

Combined revenue from the two properties increased by 5% year on year and 9% from the June quarter.

This marked their first combined year-on-year quarterly revenue growth since September 2024.

Meanwhile, The Star Brisbane reported record operating EBITDAM of A$37 million. However, the management fee recognised by The Star fell to approximately A$5 million under revised contractual arrangements.

Cash Flow and Regulatory Problems Remain

Despite stronger earnings, The Star's financial position remains uncertain.

Its statutory cash-flow report recorded a A$15.5 million net operating cash outflow during the quarter.

The company reported positive operating free cash flow when excluding one-off items, but that adjusted figure should not be confused with its statutory cash position.

Cash and cash equivalents declined to approximately A$239 million at 30 September, from A$267 million three months earlier.

The group also faces continuing regulatory restrictions.

The Star Sydney's casino licence remains suspended, with an independent manager appointed until June 2027.

Casino.com previously reported on the extension of The Star Sydney's licence suspension, including the regulator's concerns about governance and compliance.

The Gold Coast casino remains under special management arrangements until March 2027.

What Comes Next for The Star?

The company expects the 2027 financial year could deliver its first positive annual operating cash inflow before one-off items in more than two years.

However, that outlook depends on continued revenue growth, cost controls and progress in resolving outstanding financial and regulatory matters.

In its official quarterly activities report, The Star warned that material uncertainties could still affect its ability to continue operating.

The latest results show measurable improvement, but the casino operator has not yet demonstrated a sustained return to financial stability.