Star Entertainment shares jump 16.67% as EBITDA swings to A$12 million profit
Key Facts
Star Entertainment shares jumped 16.67% in the October 27 session after the Australian group reported consolidated EBITDA of A$12 million for the quarter ended September 30, 2026, compared with a loss of A$13 million in the year-earlier period, an annual improvement of A$25 million. The company said in its quarterly report that revenue was A$284 million, up 2% year on year and 8% from the previous quarter. The EBITDA swing reflects performance before interest, tax, depreciation and amortization and does not mean the group made a net profit. The announcement came as the company faced regulatory restrictions on its casino licences. It also disclosed that material uncertainties continued to exist that could affect the assessment of its ability to continue as a going concern.
The improvement was concentrated at the Sydney and Gold Coast properties, whose combined revenue was A$279 million, up 5% from the year-earlier period and 9% from the previous quarter. The report said the increase marked the first combined annual growth since the company began quarterly reporting in September 2024. The two properties recorded combined EBITDA of A$35 million, compared with A$14 million a year earlier and A$16 million in the previous quarter. That represented annual growth of 164% and quarterly growth of 125% on this measure. The company attributed revenue growth to higher electronic gaming machine revenue, driven by recent revenue and marketing initiatives.
The improvement coincided with a decline in the group's operating expenses to A$202 million from A$229 million in the year-earlier period, a 12% drop. Unallocated corporate costs also fell to A$23 million, down A$10 million, or 29%, year on year. The company recorded positive free operating cash flow during the quarter after excluding one-off items. At the same time, it reported net cash used in operating activities of A$15.458 million in the three months ended September 30. It said fiscal 2027 is expected to be the first year in more than two years to deliver annual net operating cash inflows before one-off items.
Liquidity data showed cash and cash equivalents declined to A$239 million on September 30 from A$267 million on June 30. Total cash and deposits were A$319 million, including A$80 million in restricted deposits. Total funding facilities stood at A$585.930 million at quarter-end, of which A$579.949 million had been drawn, leaving just A$5.981 million undrawn. In Brisbane, recognized operating fee revenue fell to A$5 million, down 67% from the year-earlier period. The company said this reflected an adjustment to the operator fee after completion of the first phase of the joint venture transaction in March 2026.
The Sydney casino licence remains suspended, and the manager's appointment runs until June 30, 2027, unless the New South Wales Independent Casino Commission ends it earlier. At the Gold Coast, the deferral of the licence suspension and the special manager's appointment run until March 31, 2027; the Brisbane external adviser’s appointment also continues until the same date, the company said. The group posted a statutory net loss after tax of A$307.3 million for the year ended June 30, 2026, below A$427.9 million in the previous year but above the analyst consensus estimate of A$180 million. Market analyst Tim Waterer said restoring confidence and returning to sustainable profitability would require a clearer recovery in gaming revenue, particularly Sydney table games, alongside cost control and tangible regulatory progress. The company added that the significance of the material going-concern uncertainties would be assessed when it files its half-year financial statements.