The Star Entertainment Group has delivered what amounts to a significant operational improvement in the fourth quarter, with EBITDA losses contracting 70 percent year-over-year despite revenue remaining essentially flat. The quarterly loss of $8 million before significant items, compared to a $27 million loss in the equivalent period last year, signals that the company’s turnaround strategy is gaining traction, though the underlying trading picture remains challenging.
Revenue held steady at $265 million, matching the prior quarter, yet the substantial narrowing in losses reflects aggressive cost discipline implemented under the new leadership team. The company continued to streamline corporate functions and push through operational efficiencies across its properties, demonstrating management’s ability to extract savings even as customer volumes remain subdued. Most encouragingly, the Gold Coast segment showed strengthened volumes, providing some evidence that the portfolio is beginning to diversify its earnings drivers beyond the historically dominant Sydney property, where trading has only stabilized at significantly reduced levels compared to historical norms.
Beyond the quarterly operating results, The Star achieved two transformative financial milestones. The completion of the first stage of the Joint Venture Partner transaction in April 2026 resulted in the full release of the parent company guarantee on the Destination Brisbane Consortium’s $1.4 billion debt facilities. This represents a critical de-risking of the balance sheet, removing a contingent liability that had weighed on investor confidence. The restructuring also yielded a more favorable arrangement for The Star’s operator fees at Brisbane, with a simplified fixed annual fee of $18 million plus performance-based incentives, providing clearer visibility on future cashflows.
Equally material was the refinancing completed in May 2026, which replaced the existing facility with a USD $390 million secured term loan maturing in May 2029. Even after accounting for the interest reserve account requirement, the refinance generated approximately A$130 million of incremental liquidity for the group. This cash injection provides breathing room for the company to continue its cost initiatives, service its obligations, and potentially pursue strategic opportunities as the business stabilizes.
The quantum of improvement in the loss position, combined with the removal of balance sheet contingencies and the secured funding runway, demonstrates that The Star is materially de-risking as a business. However, investors should temper optimism against the reality that absolute revenue and trading remain weak by historical standards, particularly at Sydney. The Sydney property’s stabilization is noted but continues to operate far below capacity, suggesting headroom remains untapped. The next significant inflection point will come from completion of the second stage of the Joint Venture Partner transaction, currently expected by March 2027. Success in that stage, coupled with sustained cost discipline and any recovery in customer traffic, would mark the true turning point for the turnaround narrative. This announcement has been classified as price sensitive material by the ASX.
View the full ASX announcement (PDF)
About The Star Entertainment Group Limited (ASX: SGR)
The Star Entertainment Group Limited operates integrated resorts and entertainment facilities across Australia, including properties in Sydney, Gold Coast, and Brisbane. The company owns and operates The Star Sydney and The Star Gold Coast, which feature hotels, restaurants, bars, theatres, and gaming facilities. It is headquartered in Brisbane, Australia and is a major operator in the Australian hospitality and entertainment sector.
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