THE STAR: SIGNS OF PROGRESS
The Star Entertainment Group has reported a substantial improvement in its financial result as it continues to restructure the business and address the regulatory issues that have placed significant pressure on its operations.
For the year ended 30 June 2026, The Star recorded a statutory loss of $307.3 million, down from $427.9 million in the previous financial year. Its normalised EBITDA loss also narrowed considerably, from $76 million to $16.1 million.
The results reflect a year of significant change, with management focusing on reducing costs, strengthening the operating structure and rebuilding revenue across its properties.
A stronger focus on the business
One of the most significant changes has been a major review of the group’s resourcing structure, operating model and strategic priorities.
Corporate costs were reduced by 38% to $178 million, while overall operating costs fell 8% to $860.4 million. The business has also moved towards a more property-focused operating structure, placing greater emphasis on individual property performance, customer engagement and responsible operations.
The changes follow the November 2025 acquisition of a controlling interest in The Star by Bally’s Corporation and Investment Holdings Pty Ltd.
Management is now looking beyond simply stabilising the business, with revenue growth becoming a key priority.
Early signs of improvement
There are already indications that the operational changes are beginning to translate into improved trading.
Group revenue in July was 12% higher than the March 2026 quarter. Combined revenue from The Star Sydney and The Star Gold Coast reached $92.4 million for the month, up 6% on July 2025 and 8% on the average monthly revenue recorded during the final quarter of FY26.
The company attributed the improvement to stronger gaming machine performance and increased customer engagement.
The Gold Coast has also delivered a more positive result, with gaming revenue increasing 3.2% to $256.4 million during FY26. Property EBITDA increased slightly to $79.8 million.
Working through the regulatory issues
The Star still has significant work ahead, particularly in relation to its Sydney operation and its ongoing efforts to demonstrate suitability to operate its NSW casino.
The company is also awaiting an AUSTRAC penalty relating to historical anti-money laundering failures. The NSW Independent Casino Commission has indicated that it expects AUSTRAC to seek a penalty of up to $400 million.
Despite the uncertainty, The Star ended FY26 with $367.6 million in cash and restricted deposits, slightly higher than the previous year. Chairman Soo Kim has stated that the group is confident it can meet the eventual penalty while continuing to operate and rebuild the business.
The company also continues to embed stronger compliance and responsible operating practices into its day-to-day operations.
The next stage
The FY26 result suggests The Star has moved beyond simply containing its financial decline and is now attempting to build a platform for recovery.
Lower costs, a revised operating structure, stronger liquidity and early revenue growth provide some positive indicators. The more difficult task will be maintaining that momentum while resolving the outstanding regulatory matters and rebuilding the Sydney business.
For The Star, the focus now is clear: strengthen the foundations, restore regulatory suitability and turn the early signs of revenue improvement into sustainable growth.
