Star Entertainment returns to profit in three months

Australia-based casino operator Star Entertainment Group reported a return to positive earnings for the three-month period ended in September. The company's EBITDA came in at 12 million Australian dollars. In the same period last year, it had recorded a loss of 13 million dollars.

Group revenue rose 2 percent year on year to 284 million Australian dollars. The Sydney and Gold Coast properties together generated more than 98 percent of first-quarter consolidated revenue. The Brisbane property also posted strong results.

Before the management fee paid to the Destination Brisbane Consortium, the Brisbane property's EBITDA was 37 million Australian dollars. This figure is almost three times that of the previous year and a record for the property. A decline in general expenses also had a positive effect on the results. Undistributed corporate costs fell 29 percent to 23 million dollars.

CEO Bruce Mathieson Jr said the company expects to begin rebuilding its cash reserves in the 2027 financial year. Shares rose 13 percent following the announcement. Analysts welcomed the result but do not see it as a full recovery.