The Star Entertainment Group (ASX:SGR) shares closed 13.0% higher at 13 cents on Tuesday, 27 October 2026, among the biggest gains in the ASX 300, according to Market Index. The casino operator reported a positive quarterly EBITDA, and at its AGM the same day shareholders approved new shares for its two largest investors.
What Star reported
According to Star’s September quarter report:
| Metric | 1Q FY27 | 1Q FY26 |
|---|---|---|
| Group revenue | A$284M | A$280M |
| Group EBITDA | A$12M | -A$13M |
| The Star Sydney EBITDA | A$15M | A$3M |
| The Star Gold Coast EBITDA | A$20M | A$11M |
| Unallocated corporate costs | A$23M | A$33M |
Revenue at Sydney and the Gold Coast combined grew year on year for the first time since Star began quarterly reporting. The Star Brisbane, which Star manages, posted a record EBITDAM of A$37 million.
Star Entertainment had A$239 million in cash at 30 September, down from A$267 million at 30 June. It expects FY27 to be its first year in more than two years with operating cash inflows before one-off items.
The turnaround is not finished
Star Entertainment still warns that a number of “material uncertainties” may affect its future assessment of its ability to continue as a going concern. The Star Sydney’s casino licence remains suspended, with a manager in place until 30 June 2027 unless the NSW Independent Casino Commission ends the appointment earlier. The Gold Coast licence suspension is deferred until 31 March 2027.
The insider angle: Bally’s and Mathieson
Bally’s Corporation and Investment Holdings, controlled by pubs billionaire Bruce Mathieson, are Star’s two largest shareholders. Mathieson’s son, Bruce Mathieson Jnr, is Star’s CEO.
According to the notice of meeting, both investors will be paid about A$11.9 million of interest owed to them in new shares rather than cash, at a fixed 11.23 cents a share:
- Bally’s: 62,565,672 shares, lifting its stake from 37.67% to about 38.01%
- Investment Holdings: 43,351,513 shares, lifting its stake from 23.16% to about 23.44%
Shareholders approved both issues with more than 99% of votes, according to the AGM results. At 13 cents, the new shares are worth about 16% more than their issue price.
Shareholders also approved performance rights for Mathieson Jnr, including 8 million FY27 rights priced at 13.5 cents, slightly above Tuesday’s close.
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What Star Entertainment investors should watch
- The new share issue, expected by 27 November
- Substantial holder notices from Bally’s and Investment Holdings
- The December quarter, and whether cash flow stays positive
- Regulator decisions on the Sydney and Gold Coast licences
Bottom line
Star’s casinos are earning money again, and the shares rose sharply. But with a suspended Sydney licence and going concern warnings, the risks remain high. As with Temple & Webster’s turnaround and Zip’s recent swings, investors will want to see the next quarter confirm the trend.
