Cost-saving initiatives move The Star closer to achieving positive EBITDA

(AsiaGameHub) –   The Star Entertainment Group has begun to realize the benefits of its cost-reduction strategies, as its EBITDA showed a marked improvement during the third quarter compared to the same timeframe last year, despite remaining in negative territory.

Among the cost-cutting steps taken by the Australian casino firm is a refinancing deal with WhiteHawk Capital Partners. This follows binding long-term agreements with Chow Tai Fook Enterprises Limited and Far East Consortium International Limited concerning the Queen’s Wharf Brisbane and Gold Coast properties.

Organizational streamlining occurred at the group’s headquarters, which are now under fresh management following the finalization of a A$300m strategic investment from Bally’s Corporation and Investment Holdings late last year.

In its report, The Star stated: “Additional measures, such as those targeting administrative roles at each site and prospects for lowering indirect costs and vendor outlays, are still being investigated to bolster The Star’s long-term financial health and further solidify the group’s fiscal standing.”

The Star sees EBITDA growth

For the third quarter ending March 31, 2026, The Star posted revenue of AUS$266m (roughly €163.2m), representing a 12% decline from the second quarter ($301m) and a 1% drop year-over-year (Q3 2025: $268m).

Nevertheless, EBITDA rose by 96% year-over-year to a $1m loss (compared to a $24m loss in Q3 FY25) before accounting for significant items. As of March 31, 2026, available cash was $90m.

The Star attributed the Q3 performance to a “seasonal dip in revenue and lower gaming traffic in Sydney.”

While EBITDA improved, the operator reiterated that its “status as a going concern continues to hinge on the resolution of several significant uncertainties,” many of which are linked and beyond its influence.

Performance by location:

• The Star Sydney: Revenue – $147m, EBITDA – $4m loss.
• The Star Gold Coast: Revenue – $101m, EBITDA – $8m.
• The Star Brisbane: Revenue – $15m, EBITDA – $4m loss.
• Treasury Brisbane: Revenue – $3m, EBITDA – $1m loss.

Last month, the New South Wales Independent Casino Commission (NICC) once again pushed back the license suspension for The Star Sydney, with Nicolas Weeks set to continue as the facility’s manager until September 30, 2026, unless his tenure is ended sooner.

NICC Chief Commissioner Philip Crawford remarked at the time: “The current ownership is implementing major operational changes, which the NICC is tracking closely.

“This involves efforts to ensure the business is more financially viable over the long term, helping them prove their suitability. We will persist in collaborating with The Star on their remediation goals so the casino can address the grave issues identified in the two Bell inquiries.”