Star Entertainment returned to positive quarterly operating earnings as revenue improved at its Sydney and Gold Coast casinos and corporate costs fell. The Australian operator reported A$284 million in revenue for the three months to 30 September and group EBITDA of A$12 million, compared with a A$13 million loss a year earlier.
The Star Sydney generated A$162 million of revenue and A$15 million of segment EBITDA. The Star Gold Coast recorded A$117 million of revenue and A$20 million of segment EBITDA. Inside Asian Gaming's review says operating free cash flow excluding one-off items was also positive.
Investors responded to the improvement. Star shares closed 13% higher at A$0.135 after rising as much as 26.1% during the session, according to Reuters. The price reaction followed almost a year without a profitable quarter.
Lower overheads contributed alongside property revenue. The company has moved more customer-facing functions to individual casinos and is continuing to streamline central operations. Management expects the 2027 financial year to produce positive annual operating cash inflow before one-off items, but that remains a forecast.
The update does not remove Star's wider risks. The Sydney licence remained suspended under external management, and the company was still facing significant compliance proceedings and potential financial penalties when the quarterly results were released. Cash and equivalents stood at A$239 million at the end of September, down from A$267 million at the end of June. The quarter therefore marks an operating improvement, not the completion of the group's turnaround.
