The Star Entertainment Group (ASX:STR) recorded a modest financial recovery in the second quarter of FY26, swinging to a positive earnings result after a difficult start to the year.
The casino operator reported a Q2 EBITDA of $6 million (before significant items), a notable improvement from the $13 million EBITDA loss recorded in the first quarter.
The rebound was underpinned by a 6% increase in revenue to $301 million, driven by a recovery in Sydney trading volumes, resilient performance on the Gold Coast, and higher operator fees from the newly integrated The Star Brisbane.
Despite the return to profitability, the group’s outlook remains clouded by "material uncertainties."
Operating conditions continue to be strained by the introduction of mandatory carded play and strict cash limits in New South Wales, alongside intensified regulatory oversight across its entire portfolio.
Management cautioned that while trading has stabilised, the company's status as a going concern is still contingent on resolving complex, interdependent factors—including ongoing regulatory negotiations and liquidity management—many of which remain outside of the group’s direct control.