Star Entertainment reports A$12m EBITDA as Sydney licence suspension continues

Star Entertainment Group opened FY27 with group EBITDA of A$12 million in the September quarter, its quarterly activities report shows. The result reverses the prior-year figure, when the group booked a A$13 million loss, and also improves on the A$9 million loss recorded in the June quarter. Revenue for the period was A$284 million, up 2% year on year and 8% quarter on quarter.

Combined revenue at the two wholly owned properties, The Star Sydney and The Star Gold Coast, came to A$279 million, a 5% increase on the prior corresponding period. According to Star, the pair had not recorded a year-on-year rise since quarterly reporting began with the September 2024 quarter. Most of the improvement came from electronic gaming machines, supported by new revenue and marketing programmes.

Property EBITDA at The Star Sydney was A$15 million on revenue of A$162 million. At The Star Gold Coast, EBITDA nearly doubled to A$20 million as revenue climbed 12% to A$117 million. Across the group, gaming taxes and levies increased to A$70 million.

EBITDAM at The Star Brisbane hit A$37 million, a venue record, now that Star manages the property instead of co-owning it. Under the amended management agreement, the operator fee Star collects dropped 67% to A$5 million. Unallocated corporate costs were A$23 million, A$10 million lower.

On September 30, cash and cash equivalents were A$239 million, compared with A$267 million at the end of June. Star once more pointed to material uncertainties that could bear on its going concern assessment.

Group CEO Bruce Mathieson Jnr told the annual general meeting that the NSW Independent Casino Commission had advised the suspension of The Star Sydney licence would continue for now. He added that the appointed Manager would stay until June 30, 2027 unless the NICC ends the role sooner. This comes after the NICC's position last month that the Star Sydney licence remains suspended.

In Queensland, the state government and its Commissioner for Liquor and Gaming confirmed that the suspension of The Star Gold Coast remains deferred and its Special Manager has been extended, while the External Advisor at The Star Brisbane must stay in place until 31 March 2027.

In the published AGM addresses, Mathieson said: "Whilst this outcome is disappointing, we understand that returning to suitability is not defined by a single milestone." He also reported that more than 85% of the remediation plan milestones have been completed, adding that "the momentum has continued in October."

Chairman Soo Kim, who joined the board after Bally's Corporation and Investment Holdings took control, told investors that "if the reporting is to be believed, this is my first and last Annual General Meeting" of the group. He put the cash balance at about A$200 million and argued that "the excesses of the past are in the past" on anti-money laundering and safer gambling.

The AGM results lodged with the ASX show that all resolutions were carried on a poll. Shareholders gave 99.50% backing to the issue of ordinary shares to Bally's and 99.67% to the issue for Investment Holdings. The director election of Kim drew 99.88% of votes cast, and the remuneration report was approved with 96.11%.