The Star Entertainment Group (SGR) H2 2026 earnings summary

Executive summary

• FY26 normalised revenue was $1,101 million, down 2% year-over-year, mainly due to softness in table games, especially in Sydney, partially offset by slots growth across all properties.

• EBITDA (excluding significant items and discontinued operations) was a loss of $16 million, a 79% improvement from FY25, driven by cost reductions and higher operator fee revenue.

• Significant cost-out initiatives, new leadership, and refinancing actions improved liquidity, with $267 million in cash and cash equivalents at year-end.

• Strategic investment from Bally's and Investment Holdings completed, with Bally's now holding 38% and Investment Holdings 23% of issued capital, totaling $300 million.

• The Group exited its equity interest in Destination Brisbane Consortium and is consolidating its Gold Coast assets.

Financial highlights

• Group revenue declined 2.2% to $1,101 million, with gaming revenue down 5.3% and non-gaming revenue up 5.4% year-over-year.

• Operating expenses decreased 7.9% to $860.4 million due to cost-out initiatives.

• Statutory NPAT was a loss of $307.3 million, a 28% improvement from the $427.9 million loss in FY25.

• EPS for continuing operations improved to -5.8 cents from -9.3 cents year-over-year.

• Net debt reduced to $189 million, down from $207 million in June 2025.

Outlook and guidance

• July 2026 trading showed improved momentum, with combined revenues at Sydney and Gold Coast up 12% from Q3 FY26 monthly average and the highest since Q2 FY25.

• Sydney achieved 8% sequential and 3% year-over-year revenue growth in July 2026; Gold Coast saw 10% year-over-year growth.

• Expectation to start building cash in FY27, before non-operating items, as free cash flow burn rate has materially improved.

• Ongoing focus on revenue growth, cost efficiency, and restoration of casino licences to support medium-term earnings improvement.

• Focus remains on returning to suitability for casino licences and embedding remediation of risk management and governance practices.