Australia's Star Entertainment surges 13% as cost cuts, casino strength drive profit

Star Entertainment Surges on First-Quarter Profit Turnaround

Star Entertainment closed 13% higher on Tuesday after the casino operator swung to profit for the first time in nearly a year, with strong performances at its Sydney and Gold Coast sites and cost-saving measures lifting first-quarter earnings.

Shares of the Australian firm closed at a three-week high of A$0.135, and had surged as much as 26.1% during the session.

Star posted consolidated earnings before interest, taxes, depreciation and amortisation of A$12 million ($8.42 million) for the three-month period ended September 30, a turnaround from a loss of A$13 million in the year-ago period. The company last reported a profit in the second quarter of fiscal 2026.

Its Sydney and Gold Coast casinos generated more than 98% of first-quarter consolidated revenue, which rose 2% to A$284 million.

Leadership Outlook and Financial Health

"We now expect to start building cash reserves in FY27, before non-operating items," said CEO Bruce Mathieson Jr, while the company reported A$239 million in cash and cash equivalents, as of September 30.

The investors treated the results as a relief but not a "clean bill of health," said Philip Deloughery, head of equities at MPC Markets.

Mathieson's statement is the first useful forward cash signal in a long time and stops the immediate "how long can they last" talk, Deloughery added.

The firm also reiterated that Sydney Casino's licence remains suspended and that the manager's appointment has been extended to June 30, 2027.