The Star Entertainment Group (ASX: SGR) – Quarterly Activities and Cash Flow Report

The Star Entertainment Group signalled a turning point in its recovery trajectory with Q1 FY27 results showing positive operating free cash flow excluding one-off items, marking what management expects to be the first year of net annual operating cash inflows in over two years. More significantly, combined revenue at The Star Sydney and Gold Coast properties reached AUD 279 million in the quarter, representing 5 percent year-on-year growth and 9 percent sequential growth from the prior quarter. This marks the first quarterly year-on-year revenue expansion since the commencement of quarterly reporting obligations in September 2024, a milestone that suggests the operator’s remediation efforts and marketing initiatives are gaining traction.

Group EBITDA improved substantially to AUD 12 million from a loss of AUD 13 million in the prior comparative period, a AUD 25 million swing driven primarily by the owned properties. The Star Sydney and Gold Coast combined segment EBITDA reached AUD 35 million, up 164 percent year-on-year and 125 percent sequentially, powered by electronic gaming machine revenue growth alongside cost discipline initiatives. Unallocated corporate costs fell to AUD 23 million, down AUD 10 million or 29 percent year-on-year, reflecting the ongoing transition to a decentralised operating model that shifts accountability to property level. The Star Brisbane, operating under an amended management agreement following the joint venture transaction in March 2026, delivered record EBITDAM of AUD 37 million, nearly triple the prior year comparative, though operator fee revenue was lower at AUD 4.5 million due to revised fee arrangements.

The cash position reflects the operational improvements but also the capital requirements of the remediation programme. Cash and cash equivalents stood at AUD 239 million at 30 September 2026, down from AUD 267 million at 30 June 2026, while total cash and deposits including restricted amounts reached AUD 319 million. The operator faces ongoing regulatory headwinds, with The Star Sydney’s casino licence remaining suspended through 30 June 2027 under a Manager appointment, while The Star Gold Coast operates under a deferred suspension with the Special Manager’s appointment extending to 31 March 2027. The Star Brisbane’s External Adviser appointment also extends to 31 March 2027.

The company disclosed material uncertainties relating to going concern assessment in its prior financial statements, with additional matters potentially impacting the next evaluation at half-yearly reporting. Management noted it maintains sufficient liquidity and continues to improve operations, though this remains subject to the outcome of these uncertainties, some of which lie outside the operator’s control. Investors should monitor progress on regulatory remediation efforts, cash flow trajectory through the remainder of FY27, and developments around the licence renewal or modification processes. This announcement is price sensitive and has been classified as material information 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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