Star Entertainment Posts A$12 Million in Operating Earnings in First Quarter
Key Facts
Star Entertainment Group posted earnings before interest, tax, depreciation and amortisation of A$12 million in the first quarter of fiscal 2027, compared with a loss of A$13 million in the corresponding period a year earlier. The company said in its quarterly report that revenue was A$284 million, up 2% year on year and 8% from the previous quarter. Operating expenses rose 12% from the corresponding period to A$202 million. Reuters reported that the stock rose as much as 17.4% in trading on 27 October, to A$0.135. The operating turnaround came as the Sydney casino licence remained suspended and the group faced material uncertainties about its ability to continue as a going concern.
Performance at the Sydney and Gold Coast venues led the improvement, with combined revenue of A$279 million, up 5% from the corresponding period and 9% from the previous quarter. The company attributed the growth to higher electronic gaming machine revenue, supported by recent revenue and marketing initiatives. The venues' operating earnings before interest, tax, depreciation and amortisation were A$35 million, up 164% year on year and 125% from the previous quarter. The company said revenue growth and cost-cutting initiatives supported the result. This reflects a broad improvement across its two main operations, alongside the group's continued reduction of expenses.
Unallocated corporate costs were A$23 million for the quarter, down 29% from the corresponding period, or a reduction of A$10 million. The company said quarterly free operating cash flow was positive after excluding one-off items. It added that fiscal 2027 is expected to be the first year in more than two years in which it records annual net operating cash inflows before one-off items. These expectations put the operational improvement in the context of the company's efforts to restore annual cash generation. But it acknowledged that material uncertainties remain and could affect the assessment of its ability to continue as a going concern.
Liquidity remained under review, with cash and cash equivalents of A$239 million on 30 September 2026, compared with A$267 million on 30 June. Total cash and cash deposits were A$319 million, including A$80 million in restricted deposits. Total cash and deposits stood at A$368 million at the end of June, according to company data. The figures show a decline in available cash and total deposits during the quarter, despite positive free operating cash flow after excluding one-off items. The suspension of the Sydney casino licence remains a regulatory factor alongside liquidity challenges.
The first-quarter results followed an improvement that began earlier, when the group recorded revenue of A$266 million in the third quarter of fiscal 2026, down 12% from the previous quarter. Earnings before interest, tax, depreciation and amortisation were then a loss of A$1 million, compared with a loss of A$24 million in the corresponding quarter of fiscal 2025, a 96% reduction in the loss. In its latest report, Star said the current manager of the Sydney casino is appointed through 30 June 2027, unless the NSW Independent Casino Commission terminates the appointment earlier. The licence remains suspended during this period, keeping regulatory oversight in the background of the financial improvement. Investors are next watching the Reserve Bank of Australia's Monetary Policy Board meeting on 2 and 3 November.
The Reserve Bank of Australia is scheduled to release its monetary policy decision statement on 3 November at 2:30 p.m. Australian Eastern Daylight Time. The Australian Bureau of Statistics will also release the September Consumer Price Index on 28 October, following a correction to the release date in the calendar data. In markets, the S&P/ASX 200 rose 0.3% to 8,838.10 points in trading on 27 October, according to the Associated Press, as Asian stocks advanced more broadly after gains on Wall Street. In technology news that appeared in the previous draft, Anthropic filed its registration statement with the U.S. Securities and Exchange Commission on 26 October. The filing disclosed revenue of US$16.3 billion for the six months ended 30 June 2026, up 1,300% year on year.