Star Entertainment warns tough conditions to persist after annual loss

Star Entertainment Group Ltd's shares experienced a decline of 1.9% to A$0.128 on Monday, following the company's announcement of an annual loss. The loss was attributed to a sustained slowdown in gaming demand. For the fiscal year ending June 30, 2026, the company reported a net loss of $307 million, down from a net loss of A$427.9 million the previous year.

Revenue, after normalizing, fell by 2.2% to A$1.10 billion, with gaming revenue decreasing by 5.3%. This decline was primarily due to weakening at Star's main Sydney property, which is facing regulatory reforms such as mandatory carded play and daily cash limits.

Despite the headline losses, there were a few positive indicators. Normalized EBITDA loss before significant items shrank significantly to A$16.1 million from A$76.2 million in the previous year. Moreover, Star completed a A$300 million equity investment from Bally’s Corporation, which helped eliminate a A$700 million parent guarantee on DBC debt.

The appointment of new leadership in December 2025 has been credited with driving cost reductions. Additionally, property revenues showed signs of stabilisation in the final quarter, and early trading in early July 2026 indicated a potential combined revenue improvement. However, the broader Australian market did not provide much support, as the S&P/ASX 200 only rose by 0.2%.