Star Entertainment Ends FY26 With Lower Loss and Stronger July Trading

Star Entertainment opened FY27 with better trading at its Sydney and Gold Coast casinos after finishing the previous year with a smaller loss. The improvement came as the group continued to cut costs.

July produced Star’s strongest monthly revenue result since Q2 FY25. The Star Sydney and The Star Gold Coast generated AU$92.4 million between them during the month. That was 6% above July 2025 and 8% higher than the average month in Q4 FY26.

Gaming machines were the main source of the increase. Table games remained weaker, while higher complimentary spending weighed on non-gaming revenue.

The Two Casinos Tell Different Stories

The annual results show that the two properties entered FY27 from very different positions:

The Star Sydney – gaming revenue fell 9.1% to AU$499.8 million, while property EBITDA dropped 30.6% to AU$63.7 million;
The Star Gold Coast – gaming revenue rose 3.2% to AU$256.4 million, with property EBITDA up slightly at AU$79.8 million.

Sydney continued to feel the impact of weaker table games. The property is also operating under tighter rules introduced in New South Wales, including mandatory carded play and restrictions on cash transactions.

On the Gold Coast, electronic gaming machines supported the increase in gaming revenue.

Lower Spending Offsets Revenue Decline

At group level, Star finished FY26 with a smaller loss, although revenue remained under pressure. The main figures were:

Statutory net loss of AU$307.3 million, compared with AU$427.9 million in FY25;
Normalized EBITDA loss of AU$16.1 million, versus AU$76.2 million a year earlier;
Normalized revenue of AU$1.10 billion, down 2.2%;
Gaming revenue down 5.3%;
Operating expenses of AU$860.4 million, a decline of 7.9%.

The sharper movement was on the cost side. By the fourth quarter, annualized corporate costs had fallen to AU$178 million, 38% below the FY25 level.

Star has also been reducing its central corporate structure and shifting more responsibility to individual properties.

Cash Position Improves, Problems Remain

Star had AU$267 million in cash and cash equivalents at June 30. Its May refinancing also increased the amount of liquidity available to the group.

That has not removed the warnings attached to the accounts. Star continues to report material uncertainty over its ability to remain a going concern. Several issues are still unresolved:

The potential size and timing of an AUSTRAC penalty;
Debt covenant requirements;
Casino licence suitability in Sydney and Queensland;
Access to transactional banking services.

July Sets the Next Benchmark

Cost reductions explain a large part of the smaller FY26 loss. July offers something different: an improvement on the revenue side.

The question now is whether AU$92.4 million was an isolated strong month or a level Sydney and Gold Coast can hold. A few more months around that mark would make Star’s FY27 position look materially different from the year it has just closed.