The Star Entertainment Group Ltd (ASX: SGR) share price is falling almost 4% on Monday after the company reported a net loss of $307 million for FY26 alongside a stabilisation in property revenues and signs of cash flow improvement.
What did The Star Entertainment Group report?
- Normalised revenue was $1,101 million, down 2% from FY25
- Normalised EBITDA loss before significant items improved to $16.1 million (FY25: $76.2 million loss)
- Statutory net loss after tax was $307.3 million
- Corporate costs were reduced by $75 million in FY26, with ongoing savings targeted
- Cash and cash equivalents at year-end were $267 million
- No dividend was declared for FY26
What else do investors need to know?
The Star completed a $300 million equity investment from Bally’s Corporation and Investment Holdings, and finished the first stage of the JVP Transaction which removed the company’s $700 million guarantee on DBC debt. New leadership joined the Board and executive team in December 2025, driving operational changes and cost reductions.
Revenues at operating properties stabilised in the last quarter after nearly two years of declines. Positive signs continued into July 2026, with combined revenue up 6% year-on-year as improved customer engagement and increased marketing spend began to pay off.
What did The Star Entertainment Group management say?
The company’s CEO and Managing Director, Bruce Mathieson Jnr, commented:
We have moved to a more accountable, property-led operating model and a renewed focus on performance, customers, and responsible operations⦠The Group has successfully refinanced its corporate debt and continued the work of strengthening its balance sheet with a strong liquidity position. These achievements have provided greater stability and a stronger foundation for the future. Returning to suitability remains critical to our future, and the work required to achieve that objective has and is being increasingly embedded in how we operate every day.
What’s next for The Star Entertainment Group?
Looking ahead, The Star is focused on regaining suitability for its casino licences in New South Wales and Queenslandâa key factor for future growth and access to capital. The company expects to keep improving earnings in FY27, with ongoing cost reductions, operational changes, and a new direct attribution approach for corporate costs.
The second stage of The Star’s JVP Transaction is planned for completion by March 2027. Management remains cautious given material uncertainties around regulatory outcomes, profitability, and the restoration of casino licences, but the business expects to build cash reserves and continue its recovery.
The Star Entertainment Group share price snapshot
Compared to the S&P/ASX 200 index (ASX: XJO), The Star Entertainment Group share price has outperformed over the past year with a gain of around 13%.
The post The Star Entertainment share price falls on FY26 earnings appeared first on The Motley Fool Australia.
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