Star Entertainment swings to Q1 profit with $12M EBITDA
Key points
- Star Entertainment Group reported a positive group EBITDA of $12 million for the September quarter, reversing a $13 million loss from the same period a year earlier.
- Following the operational update, the company's share price jumped 17.3% to 13 cents during morning trading.
- The casino operator attributed the financial turnaround to improved results at its Sydney and Gold Coast properties, supported by higher electronic gaming machine revenue.
The Star Entertainment Group (ASX:SGR) posted a positive group earnings before interest, taxes, depreciation, and amortisation of $12 million for the September quarter, reversing a $13 million loss from the prior corresponding period.
The performance contrasted sharply with previous reporting periods that suffered from persistent declines, regulatory interventions, and strict compliance costs.
Combined revenue from The Star Sydney and The Star Gold Coast rose 5% year-on-year, pushing total group revenue up 2% to $284 million.
The company stated that first-quarter operating cash flow turned positive, and it expects fiscal year 2027 to mark its first period of positive net operating cash inflows in more than two years.
Following the announcement, the The Star Entertainment Group (ASX:SGR) share price was up 17.3% at $0.13.
The business has spent recent years navigating a turbulent operational environment, including government enquiries and regulatory penalties related to anti-money laundering compliance failures.
Management has continued to execute corporate cost-reduction initiatives and strategic asset reviews to stabilise its balance sheet and restore regulatory compliance across its properties.
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