The Star Entertainment Group’s FY26 results mark a significant inflection point for a company that has spent two years struggling with declining revenues. With the appointment of new leadership in December 2025 backed by the $300 million equity injection from Bally’s and Investment Holdings, combined with the stabilisation of revenues in Q4 FY26, the company appears to be entering a recovery phase. July revenues ran 12% higher than Q3’s nadir and exceeded the monthly average since Q2 FY25, suggesting improved operational momentum despite the challenging operating environment.
The financial discipline imposed by the new management team is evident in the aggressive cost restructuring. Group corporate costs dropped $75 million in FY26, with Q4 annualised corporate expenses sitting at $36 million below full-year figures. This represents a 38% reduction in annualised corporate costs compared to FY25, bringing group corporate expenditure to $178 million on an annualised 4Q basis. These substantial savings demonstrate decisive action to right-size the business and improve profitability, moves that had been deferred under previous management. The company has also undertaken a comprehensive review of its resourcing structure and operating model, indicating changes extend beyond simple cost cutting to structural improvements.
The cash position has strengthened materially despite ongoing challenges. With $267 million in cash and cash equivalents at 30 June 2026, the company has reinforced its balance sheet against uncertainty. More significantly, the average monthly free cash burn rate of $20 million in H1 FY26 has improved substantially, and management expects cash flow to swing positive in FY27 before accounting for non-operating items. This trajectory matters greatly for a capital-intensive business and suggests the restructuring is delivering tangible results beyond accounting profits.
The completion of the first stage of the JVP Transaction highlights progress on liability management. By eliminating The Star’s $700 million guarantee on DBC debt, the company has reduced contingent liabilities and improved its financial flexibility. The Star Brisbane’s performance underscores the potential embedded in the portfolio: EBITDAM before operator fees nearly doubled in the property’s second year under The Star’s management, with current monthly run-rates averaging $13 million and marking all-time highs. This demonstrates that operational excellence can drive substantial returns in individual properties and validates management’s strategy.
Investors should monitor whether Q4’s revenue stabilisation persists into FY27, whether the cash burn continues to improve, and crucially, the company’s progress in demonstrating suitability to hold casino licences and remediating its governance practices. The company faces meaningful regulatory headwinds that could constrain growth, but the new leadership’s decisive approach to cost and operations suggests a credible turnaround plan. This announcement is price sensitive and has been flagged as 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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