Flagship Australian casino brand The Star Entertainment Group reported a significant resurgence year-on-year, as it posted a AU$1m (£530,000) loss for Q3 2026 compared to a $24m loss in Q3 2025.
The quarter was, however, slightly weaker than Q2, with revenue falling and profitability slipping back into the red, as regulatory pressures and softer visitation continued to weigh on performance.
Group revenue came in at $266m, down 12% quarter-on-quarter and slightly below the prior corresponding period’s $268m.
The company posted an EBITDA loss of $1m, reversing a $6m profit in Q2, though still a marked improvement on 2025 due to cost-cutting efforts.
Declines were largely driven by ongoing softness in Sydney, where revenue dropped 10% versus the previous quarter and 9% YoY. Table games were a particular weak spot, and the impact of mandatory carded play and cash limits continues to be felt – average daily revenue at the property is still about 20% below pre-reform levels.
Examples of these reforms include a $100 cash load-up limit on Victorian poker machines and delayed $1,000 daily cash limits at New South Wales casinos, which remain at $5,000 until August 2027.
Elsewhere, performance was mixed. The Gold Coast delivered modest YoY growth, helped by stronger electronic gaming and hospitality, while Brisbane results were affected by the transition out of the Destination Brisbane Consortium (DBC) joint venture and changes to the operator fee structure.
Cost reductions were a clear positive, with operating expenses falling 11% QoQ and 10% YoY, reflecting early impact from “cost out” initiatives introduced by the new leadership team, including corporate streamlining and supplier cost reviews.
The Star’s most recent updates in turnaround plan
However, the Star’s broader financial position remains fragile. Available cash declined to $90m at the end of March, and the company is working against a tight deadline to complete a refinancing by 15 May to avoid breaching its existing debt agreement.
A binding refinancing commitment with WhiteHawk Capital Partners, announced at the end of last month, is in place, with regulatory approvals already secured.
The refinancing comprises a three-year facility totalling approximately $550m, which will be used to fully refinance existing group debt while providing additional liquidity.
A minimum liquidity requirement has been set at $50m for the first 12 months following financial close, which it is on track to meet, increasing to $75m between 12-18 months and $100m thereafter.
Additional covenants include a minimum asset coverage ratio from December 2026 and a minimum EBITDA threshold from March 2027, alongside standard reporting obligations and default provisions.
An interest reserve account covering the first 12 months of interest payments will also be established as part of the financing structure.
“The Star is working to complete the refinancing as soon as practicable but by no later than 15 May 2026 in order to satisfy the conditions of the waiver given by the existing SFA lenders,” a statement from the company read.
The Star has also made progress on its strategic reset, completing the first stage of its exit from the Brisbane joint venture with the DBC, which included the release of a significant parent company guarantee tied to $1.4bn in debt facilities.
Financial issues won’t instantly disappear
Despite these steps, The Star reiterated that material uncertainty remains over its ability to continue as a going concern, with multiple interdependent factors, including refinancing, regulatory outcomes and operational recovery, still unresolved.
Bruce Mathieson Jnr, who is now Chief Executive Officer of the company, has continued to work on a turnaround strategy which included appointing two new Non-Executive Directors – Brooke Lindsay and Grant Bowie – this month.
The business is still in a transitional period following a $300m strategic investment from Bally’s Corporation and Investment Holdings late last year, which will eventually give Bally’s a 56.7% stake in the Star.
It is also dealing with ongoing regulatory change in Australia, with a key recent focus in the country being on a clampdown on gambling advertising. The Murphy report, which was penned by the late MP Peta Murphy and contains 31 recommendations for regulatory reform in Australia, is still yet to see many of its recommendations be implemented in the country.
For the Star, an instant switch to the black was always going to be highly unlikely. Despite the inevitable pressures it is facing both internally and externally, from the outside, it still looks to be in a much healthier position than it was at the start of 2025, when it was mulling over losses of more than $300m.
