Star Entertainment reports AU$12 million EBITDA for Q1 FY27

Star Entertainment Group reported EBITDA of AU$12m for the first quarter of FY27, compared with a loss of AU$13m a year earlier, the company said. The result was helped by higher earnings from electronic gaming machines at its Sydney and Gold Coast casinos and by lower operating expenses, according to the company.

Group revenue rose 2% to AU$284m. Growth was partly held back by Brisbane operator fees, which fell 67% to about AU$5m under an amended Casino Management Agreement. Unallocated corporate costs declined 29% to AU$23m, and the company said it intends to use further savings to support additional marketing investment.

Trading kept improving in October, according to CEO Bruce Mathieson Jnr. Chairman Soo Kim told Tuesday's annual general meeting that tens of millions of dollars of excess corporate costs had been taken out of Star. Kim also described a transfer of authority and accountability to the teams running each property. This month operational control was decentralized, letting property management react to conditions in local markets, while remediation, legal matters and compliance stay with corporate functions.

According to Kim, the refinancing would have dealt with the company's near-term maturity problems and bought extra time for the turnaround strategy. The quarter's cash flow statement nonetheless recorded net operating outflows of AU$15.5m, which included non-recurring items such as casino duty payments from history and tax receipts. Excluding those items, Star said operating free cash flow was positive. The group expects FY27 to bring its first annual net operating cash inflow in more than two years.

At 30 September, cash and cash equivalents stood at AU$239.4m, down from AU$267.1m at 30 June. Even with better earnings and the refinancing now completed, the company said material uncertainties remain over its ability to continue as a going concern.

Mathieson reported that over 85% of remediation plan milestones are now complete, though he was disappointed by the most recent regulatory outcome. The Sydney casino licence is still suspended, and the appointed manager will stay on until 30 June 2027. On the Gold Coast, the licence suspension remains deferred and the special manager continues until 31 March 2027. Brisbane's external adviser appointment was likewise extended to 31 March 2027.