The Star Sees Sydney Casino Trading Stabilise but Remain at 'Historical Lows' in Q4

In its Q4 FY26 report, The Star Entertainment Group noted that trading at The Star Sydney has stabilised but stays at persistently low levels. The group reported group revenues of A$265m (around €162.8m), flat quarter-on-quarter but down 2% year-on-year. EBITDA before significant items showed an $8m loss, a 70% improvement from the $27m loss a year earlier, but a deterioration from the $1m loss in Q3.

The Star Sydney recorded revenue of $150m, slightly up from Q3's $147m but below the $162m in Q4 FY25. Its EBITDA loss widened to $10m from Q3's $4m loss, though better than the $14m loss a year prior. Gaming revenue fell 4% year-on-year, with declines in table games and non-gaming offset by growth in electronic gaming machines.

For The Star Gold Coast, revenue rose to $107m (from $101m in Q3 and $96m a year ago). EBITDA improved to $13m (from $8m in Q3 and $2m in Q4 FY25). Gaming revenue jumped 21% year-on-year, driven by table games and electronic gaming machines, while non-gaming revenue was steady year-on-year.

The Star Brisbane generated $5m in revenue, down from $15m in Q3 and $8m in Q4 FY25. Its EBITDA loss deepened to $12m from $4m in Q3, but improved from a $15m loss a year earlier.

Destination Brisbane Consortium (DBC) and Refinancing

In April, The Star completed the first stage of binding long-term documentation with Chow Tai Fook Enterprises and Far East Consortium regarding the DBC, selling its 50% equity interest in Queen's Wharf Brisbane. The fixed monthly operator fee under the amended casino management agreement was finalised at a fixed annual $18m (paid monthly), plus a performance-based incentive fee tied to EBITDAM. The Star received a $4.5m operator fee in Q4. The DBC holds a performance termination right with 90 days' notice.

Stage two relates to the Destination Gold Coast Consortium and other Brisbane properties, with conditions precedent expected to be satisfied by the second half of 2026, no later than 31 March 2027. The Star now fully owns The Star Gold Coast assets, while CTFE and FEC take control of the Treasury Hotel and Charlotte Street Car Park.

Completing stage one satisfied terms of The Star's refinancing deal with WhiteHawk Capital Partners. During the quarter, the operator fully refinanced its debt, using US$390m (about A$540m) of funds from WhiteHawk. The Star increased additional liquidity by roughly A$130m after accounting for the interest reserve account.

These funds support ongoing operations, cost-out initiatives, and strategic projects including a streamlined corporate office under new leadership following the A$300m investment from Bally's Corporation and Investment Holdings. Total cash and equivalents stood at $267m as of 30 June 2026.

Regulatory Progress and Fines

The Star continues cooperating with authorities to overcome past regulatory and compliance issues. It recently settled tax disputes with the Australian Taxation Office over historic GST and withholding tax on junket operator payments. The NSW Independent Casino Commission (NICC) imposed fines totalling $10m on The Star Sydney, plus an enforceable undertaking requiring an additional $5m for financial crime risk management technology.

Group CEO Bruce Mathieson Jnr commented that the company takes its obligations seriously and appreciates the NICC allowing progressive payment of penalties until 30 June 2027 while investing in technology. "We will continue to engage constructively with the NICC in respect of The Star Sydney as we work through our remediation program," he added, expressing confidence in progress.