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The Star Entertainment Group Returns to Positive Quarterly Earnings on Improved Casino Revenue
The Star Entertainment Group posted $12 million in positive quarterly EBITDA for the three months to 30 September, a $25m improvement on the $13m loss a year earlier, as group revenue reached $284m, up 8% from the previous quarter.
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What happened
The Star Entertainment Group posted $12 million in positive quarterly EBITDA for the three months to 30 September, a $25m improvement on the $13m loss a year earlier, as group revenue reached $284m, up 8% from the previous quarter.
Confirmed
Global impact / market context
Returning to positive EBITDA, which means earnings before interest, taxes, depreciation and amortisation, shows the casinos are generating operating profit again. That matters because stronger trading and lower corporate costs can help the company cover costs and reduce pressure from its regulatory and financial uncertainties.
Analyst inference
The recovery was driven by the two owned casinos, whose combined revenue rose 9% quarter on quarter and segment EBITDA more than doubled from the June quarter. Sydney benefited from electronic gaming machine growth, while Gold Coast revenue rose 12% year on year, though a statutory operating cash outflow showed cash generation remains uneven.
Analyst inference
What to watch
- The group recorded a statutory operating cash outflow during the quarter, so watch whether cash available, meaning cash on hand, improves as trading strengthens in the coming quarters. Confirmed
- Watch whether the revenue initiatives and cost reductions continue to lift segment EBITDA at both owned casinos, and whether softer table games and non-gaming activity weigh on Sydney's recovery. Proposed
- The group remains exposed to material regulatory and financial uncertainties, so watch for developments that could raise costs, restrict operations, or affect borrowed money and investor positioning. Analyst inference