Star Entertainment's Surprise Profit: What's Behind the Turnaround?

Dr. Annelies De Vos · 2026-10-27

Star Entertainment Group just did something it hasn't done in a while: it made money. In the September quarter, the Australian casino operator reported a profit, and it's got people in the industry talking. Let's break down what happened and why it matters. ### The Numbers That Matter For the three months ending September 30, Star posted consolidated EBITDA of A$12 million (about $8 million USD). That's a huge swing from the A$13 million loss it posted in the same period last year. Revenue also ticked up 2% year-on-year to A$284 million (roughly $190 million USD). Not bad for a company that's been through the wringer. ### Where the Money Came From The Star Sydney and The Star Gold Coast did the heavy lifting, generating over 98% of the group's first-quarter revenue. Brisbane also chipped in with a solid result. It's clear that these flagship properties are the engine driving the recovery. ### Why This Turnaround Is a Big Deal A few things stand out here. First, the profit came despite a tough operating environment. Casinos everywhere are dealing with tighter regulations, higher costs, and changing consumer habits. Star managed to cut corporate costs and boost revenue—a combination that's harder than it sounds. Second, this isn't just a blip. The company has been working on its balance sheet and operations for a while. Returning to profit suggests those efforts are starting to pay off. > "This is a significant milestone for Star, but the real test will be sustaining this momentum in the coming quarters." That's the view of many analysts, and it's a fair point. One good quarter doesn't guarantee a lasting turnaround, but it's a step in the right direction. ### What's Next for Star? Star's management will need to keep a close eye on costs and look for ways to grow revenue without running afoul of regulators. The company has already signaled it's focused on efficiency and improving the customer experience. If it can do that, the profit trend might just continue. For now, though, Star has something to celebrate. And for investors and industry watchers, it's a sign that even in a challenging market, the right strategy can turn things around. ### The Bottom Line Star Entertainment's return to profit is a welcome development. It shows that with disciplined cost management and a focus on core assets, a casino operator can bounce back. Whether this is the start of a new chapter or just a temporary high, only time will tell. But for now, the numbers are looking up.