Star Entertainment Group went into this result priced like a deeply wounded turnaround story, with the stock closing at A$0.125 and trading on a low price to sales multiple against Australian hospitality peers. The headline from the earnings is not revenue, which sits around A$1.3b over the last twelve months. The story is the persistent losses, with earnings from continuing operations running into the hundreds of millions in the red and recent shareholder dilution still fresh in investors minds. Today's price reaction looks like a verdict on that balance sheet strain rather than on growth hopes.
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FY 2026 Earnings Summary
- Revenue (TTM FY 2026): A$1,307.2m vs. A$1,536.1m (TTM FY 2025) (Revenue declined about 15%)
- Net Loss from Continuing Operations (TTM FY 2026): A$303.2m loss vs. A$1,995.6m loss (TTM FY 2025) (Loss narrowed about 85%)
- Basic EPS (TTM FY 2026): A$0.059 loss per share vs. A$0.707 loss per share (TTM FY 2025) (Loss per share improved about 92%)
- Net Loss from Discontinued Operations (TTM FY 2026): A$4.1m loss vs. no comparable discontinued loss in TTM FY 2025 disclosed (Indicates an additional drag on the bottom line in the latest period)
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Star bull case hangs on cleaner earnings mix
Bulls argue Star Entertainment Group is a liquidity workout that turns into an earnings recovery story once remediation and transformation costs ease and tourism demand helps revenue stabilise. The latest numbers partly support that view. Revenue over the last twelve months is A$1,307.2m compared with A$1,536.1m in the prior period, so the recovery in visitation is not yet visible in the top line. However, loss from continuing operations narrowed from A$1,995.6m to A$303.2m and basic EPS loss improved from A$0.707 to A$0.059. That points to heavy cost and remediation spend rolling off faster than revenue pressure. For the bullish thesis, this is a clear milestone hit on loss reduction. What is still missing is any sign that growth projects and higher value customers are lifting total revenue.
Bear case focuses on structural and balance sheet strain
The bear case is that persistent regulatory pressure, remediation spend and financing risk keep Star Entertainment Group trapped in losses and shareholder dilution. The results show some fears are still present. Revenue is around A$1.3b for the year and remains below the prior A$1,536.1m, which fits concerns that regulatory limits and changing customer behaviour are weighing on activity. There is also a new A$4.1m loss from discontinued operations, which means additional drag and some portfolio disruption. On the other hand, the loss from continuing operations has fallen sharply from A$1,995.6m to A$303.2m and EPS loss has eased. That directly challenges the idea that cash burn is unchecked. With the share price at A$0.125 and recent dilution still fresh, the market reaction looks more like an ongoing verdict on balance sheet fragility than on current operational momentum.
After such heavy shareholder dilution and ongoing balance sheet strain, it is worth asking if this is just the visible damage. Expose any further structural warning signs in our risk analysis for Star Entertainment Group which shows 1 important warning sign.Take Control Of Your Next Move
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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