Australia’s Star Entertainment Group swung back into the red with a slim AU$1 million EBITDA loss for the quarter ended March 31, 2026. Revenue dropped 12 percent to AU$266 million from the prior period’s AU$302 million gain. The shift highlights ongoing woes at The Star Sydney, but early cost cuts offer a glimmer of hope.
Star Entertainment filed its quarterly update on Monday, revealing the tough first quarter of calendar 2026. Gaming revenue suffered most, with lower visitation at The Star Sydney dragging overall figures down. Table games showed softness at both Sydney and Gold Coast sites.
The December quarter had delivered a bright spot, an AU$6 million EBITDA profit on stronger play. This time, seasonal slowdowns hit hard. Fewer high rollers showed up in Sydney, a key revenue driver.
One key fact stands out. Revenue per property varied widely. Treasury Brisbane held steady, but Sydney’s mandatory carded play rules kept crowds thin.
Cost Savings Kick In Under Bally’s Watch
New owners Bally’s Corporation and Investment Holdings jumped in late last year with a AU$300 million lifeline. They now hold major stakes, Bally’s at about 38 percent. Their push for cuts narrowed the EBITDA loss by 96 percent from AU$24 million a year earlier.
The team slashed supplier costs across all sites. They closed the corporate office and shifted duties to properties. One sentence sums it up: Changes aim to trim fat fast.
Further reviews continue with shareholders. Indirect costs face deep cuts. The Star ended March with AU$90 million cash, down but enough to fight on.
- Key savings moves include staff tweaks and vendor deals.
- Property-level efficiencies target daily operations.
- Operator fees rose, boosting non-gaming income.
Performance Snapshot Reveals Uneven Recovery
Numbers paint a clear picture of ups and downs. Here’s a quick look at recent quarters:
| Quarter | Revenue (AU$M) | EBITDA (AU$M) |
|---|---|---|
| Q3 FY25 | Not specified | -24 |
| Q1 FY26 | 284 | -13 |
| Q2 FY26 | 302 | +6 |
| Q3 FY26 | 266 | -1 |
Q2 marked the first profit in years, but Q3 erased it amid Sydney’s license woes. Gold Coast and Brisbane chipped in, yet not enough to offset the flagship’s pain.
Regulators keep Sydney under a special manager until at least September 2026. Past scandals over money laundering and junkets linger. Fines and fixes cost millions.
Refinancing Deal Holds Key to Survival
WhiteHawk Capital, a U.S. lender, eyes a AU$390 million refinance. Talks wrapped late March. Success here could unlock fresh cash and ease going-concern fears. Shares dipped 2 percent to AU$0.113 on the news.
Executives stress customer pulls like events and dining. VIP programs target locals over risky overseas junkets. Bally’s brings U.S. know-how to blend resorts and gaming.
Brisbane’s Treasury thrives on steady mass play. Gold Coast draws tourists, but tables lag. Sydney needs license relief to shine again.
One bright note: Overall volumes stabilized quarter over quarter. Cost discipline builds a base for growth.
Star Entertainment fights for its spot as Australia’s number two casino group. Bally’s rescue stopped the bleed, but Sydney’s oversight and soft play test every move. Investors watch refinancing close. Regulators demand proof of clean ops.
