Earnings release
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THE STAR ENTERTAINMENT GROUP LIMITED ABN 85 149 629 023 | T + 617 3228 0000 | LEVEL 3, 159 WILLIAM ST, BRSBANE QLD 4000 | STARENTERTAINMENTGROUP.COM.AU ASX ANNOUNCEMENT 27 October 2026 QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2026 The Star Entertainment Group Limited (ASX: SGR) ( The Star, the Group or the Company) today released its unaudited quarterly activities report for the first quarter ended 30 September 2026 as set out below. This announcement should be read in conjunction with the unaudited Appendix 4C – Quarterly Cash Flow Report also released to the ASX today. HIGHLIGHTS FOR Q1 FY27: • Q1 FY27 Group EBITDA of $12 million, up $25 million on the prior comparative period (pcp) • Q1 FY27 combined revenues for The Star Sydney and The Star Gold Coast continued the recent growth momentum and were up 9% from Q4 FY26 • The Star Sydney and The Star Gold Coast quarterly year on year combined revenue growth for the first time since commencement of The Star’s quarterly reporting obligations , being the quarter ended September 2024 • Q1 FY27 group unallocated corporate costs were $23 million, which is $10 million, or 29% below the pcp • Q1 FY27 operating free cash flow excluding one-off items was positive. FY27 is expected to be the first time The Star will generate net annual operating cash inflows, before one -off items, in more than two years • Q1 FY27 EBITDAM (before operator fee) of The Star Brisbane integrated resort managed by The Star was $37 million, nearly triple the pcp, an all-time record, and continues to enjoy solid growth. FINANCIAL SUMMARY1 Group QUARTERLY FINANCIALS (A$m) CHANGE Q1 FY27 Q4 FY26 (last quarter) Q1 FY26 (pcp) vs. Q4 FY26 (last quarter) vs. Q1 FY26 (pcp) Revenue $284 $262 $280 8% 2% Gaming taxes & levies ($70) ($66) ($64) 6% 10% Operating expenses ($202) ($205) ($229) (1%) (12%) Group EBITDA $12 ($9) ($13) 228% 191% 1 Revenue and operating expenses are before significant items, share based expenses and discontinued operations. They also exclude contracted cost recovery associated with DBC (at cost, no margin) in relation to the supply of labour and other shared costs.
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Page 2 of 5 Property Revenue and EBITDA The Star Sydney QUARTERLY FINANCIALS (A$m) CHANGE Q1 FY27 Q4 FY26 (last quarter) Q1 FY26 (pcp) vs. Q4 FY26 (last quarter) vs. Q1 FY26 (pcp) Revenue $162 $150 $161 8% 1% Gaming taxes & levies ($48) ($45) ($45) 6% 7% Operating expenses ($99) ($106) ($113) (7%) (13%) Segment EBITDA $15 ($1) $3 nmf nmf The Star Gold Coast Revenue $117 $107 $105 9% 12% Gaming taxes & levies ($22) ($21) ($19) 6% 17% Operating expenses ($75) ($69) ($75) 8% (1%) Segment EBITDA $20 $17 $11 18% 92% The Star Brisbane Operator fee revenue $5 $5 $14 0% (67%) Operating expenses ($5) ($6) ($8) (9%) (37%) Segment EBITDA $0 ($1) $6 nmf nmf Corporate Expenses Unallocated corporate expenses ($23) ($24) ($33) (4%) (29%) The Star Sydney and The Star Gold Coast combined (owned properties) QUARTERLY FINANCIALS (A$m) CHANGE Q1 FY27 Q4 FY26 (last quarter) Q1 FY26 (pcp) vs. Q4 FY26 (last quarter) vs. Q1 FY26 (pcp) Revenue $279 $257 $266 9% 5% Segment EBITDA $35 $16 $14 125% 164% The Star Brisbane (managed property) QUARTERLY FINANCIALS (A$m) CHANGE Q1 FY27 Q4 FY26 (last quarter) Q1 FY26 (pcp) vs. Q4 FY26 (last quarter) vs. Q1 FY26 (pcp) Revenue $136 $121 $119 12% 14% EBITDAM $37 $26 $13 43% 193%
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Page 3 of 5 COMMENTARY • Q1 FY27 consolidated revenue of $284 million was up 2% on the pcp and up 8% on Q4 FY26 (last quarter), reflecting growth momentum at The Star Sydney and The Star Gold Coast, partially offset by a lower operator fee for The Star Brisbane. The Star Sydney and The Star Gold Coast combined revenue of $279 million was up 5% on the pcp and 9% on the last quarter, reflecting strong electronic gaming machine revenue growth driven by recent revenue and marketing initiatives. This marks the first quarterly year on year revenue growth since the commencement of The Star’s quarterly reporting obligations, being the quarter ended September 2024 (Q1 FY25). The Star Brisbane operator fee of $5 million was down 67% on the pcp and flat on the last quarter. This reflects the amended operator fee under the amended Casino Management Agreement ( CMA) following completion of Stage 1 of the JVP Transaction in March 2026 (refer to the ASX announcement on 1 April 2026). • Q1 FY27 consolidated EBITDA of $12 million was up on an EBITDA loss of $13 million in the pcp, or a $25 million improvement, and up on an EBITDA loss of $9 million in the last quarter. Excluding The Star Brisbane segment EBITDA, the Q1 FY27 EBITDA is a $31 million improvement from the pcp. Specifically, The Star Sydney and The Star Gold Coast had combined EBITDA of $35 million, up 164% on the pcp and 125% on the last quarter, driven by revenue growth coupled with The Star’s cost savings initiatives. • Treasury Brisbane operations continue to be classified as discontinued operations, with comparative information restated accordingly. Treasury Brisbane EBITDA was nil for the quarter. • The Star Brisbane EBITDAM (EBITDA before Star’s management fee charged to DBC) reflects operating performance of the managed integrated resort and includes directly attributable expenses, separate from the inter-company arrangements under the CMA. In addition, The Star Brisbane EBITDAM excludes any expenses that DBC incurs directly as the owner of the property, that are not within Star’s remit as the operator of The Star Brisbane. Therefore, EBITDAM should be viewed in the context of operating trends measured on a consistent basis of the operations under The Star’s management. • As disclosed in The Star’s FY26 Results Presentation on 31 August 2026, from FY27, the Group has transitioned from a fixed percentage corporate overhead cost allocation methodology to a direct attribution approach, apportioning corporate shared service costs to the respective properties on a directly attributable basis and reflecting expected decentralised operations. Residual corporate costs that cannot be reasonably attributed to a specific property’s operations will be retained at the Group level and reported as unallocated corporate costs. Throughout this announcement, prior year FY26 results have been restated to reflect this revised direct attribution methodology on property segment performance in order to present p rior year comparability and segment presentation of unallocated corporate costs. It should be noted that this change has no impact on total Group earnings. • The Star maintains sufficient liquidity and continues to improve operations, but that is subject to and dependent on the outcome of a number of material uncertainties, some of which are interdependent and outside The Star’s control. The material uncertainties were disclosed in Note G of the Group's FY26 financial statements released on 31 August 2026. As of the date of this announcement, there are a number of continuing matters which are material and may impact The Star’s future assessment of its ability to continue as a going concern. The materiality of these matters will be assessed at the time of filing The Star’s half yearly financial statements. There is no assurance that The Star will have resolved these material uncertainties by such time. • At 30 September 2026, The Star had cash and cash equivalents of $ 239 million (30 June 2026: $267 million)2. 2 At 30 September 2026, the Group had total cash and cash deposits of $319 million (30 June 2026: $368 million), comprising $239 million of cash and cash equivalents (30 June 2026: $267 million), plus $80 million of restricted deposits (30 June 2026: $101 million). Restricted deposits comprises $48 million held in an Interest Reserve Account (to fund the first year to May 2027 of interest payments on the refinancing facility), cash backed bank guarantees (property leases and transactional banking facilities), and security relating to workers compensation cover.
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Page 4 of 5 The Star Sydney • Revenue increased 1% on the pcp and 8% on the last quarter, reflecting strong year on year electronic gaming machines growth, partially offset by softness in table games and non-gaming revenue (due to increased complimentary investment). Year on year non-gaming revenue was also adversely impacted by the completion of the sale of the Event Centre in September 2025 and the cessation of such events and catering revenues. • Property EBITDA for the quarter of $15 million reflects a $12 million improvement on the pcp, driven by stabilisation of revenues and improving cost efficiencies. The Star Gold Coast • Both Revenue and EBITDA increased substantially on the pcp, due to strong growth in electronic gaming machines, driven by increased marketing investment and promotional initiatives. • Property EBITDA for the quarter of $20 million almost doubled on the pcp, increasing by $9 million, reflecting strong gaming revenue growth. The Star Brisbane • The Star is the operator of The Star Brisbane under a CMA with DBC and recognises the operator fee as revenue and directly attributable overhead costs as the associated expense. As noted above, the operator fee payable to The Star was amended with effect from 1 April 2026. Operator fee revenue for the current quarter based upon the amended CMA was $4.5 million compared to $13.8 million in the pcp. Other notable Appendix 4C items: • Section 1.2(b) of the Appendix 4C includes a one-off payment of historical underpaid casino duties, as agreed with the NSW Treasury. • During the current reporting period the Group received one-off proceeds from a settlement with the Commissioner of Taxation in relation to the GST and withholding tax treatment of payments made to junket operators. The Group also received one-off returned rebate duty from unrecovered debts written off in prior years. These amounts are shown in Section 1.8 of the Appendix 4C. • The aggregated amount of payments to related parties and their associates for operating activities was $2.3 million in the quarter. This is shown in Section 6.1 of the Appendix 4C. This includes remuneration of Directors (including the Group CEO and Managing Director) and other key management personnel ($2.0 million) and payments to the Destination Gold Coast Consortium (DGCC) joint venture ($0.3 million). • The aggregated amount of payments to related parties and their associates for investing activities was $6.1 million in the quarter. This is shown in Section 6.2 of the Appendix 4C. This comprises payments to and on behalf of the DGCC joint venture in relation to loans ($5.1 million) and property, plant and equipment ($1.0 million).
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Page 5 of 5 OPERATIONAL UPDATE Casino Licence Updates • The current status of The Star’s casino licences is as follows: o The Star Sydney’s casino licence remains suspended and the Manager’s term of appointment for The Star Sydney currently extends to 30 June 2027, unless terminated earlier by the NSW Independent Casino Commission. o The deferral of the suspension of The Star Gold Coast’s casino licence and the Special Manager’s term of appointment for The Star Gold Coast currently extends 31 March 2027. o The Star Brisbane's External Adviser’s appointment currently extends to 31 March 2027. • The Star continues to engage with regulators and government in respect of the above casino licences. Update on Key Initiatives • One of the objectives of the remediation plan is to transition to a decentralised operating model with the intention of promoting greater accountability at the property level for business performance, risk and compliance. This quarter The Star has pushed many critical, customer -facing functions to the properties. Consequently, the properties now have the capability to operate independently. Corporate retain s remediation, legal and compliance oversight, technology, audit, tax and consolidated reporting. The Star will continue to drive efficiencies in the corporate functions and empower the properties , which is expected to further reduce unallocated corporate costs as this decentralisation model takes shape and is embedded • The Star, in consultation with its major shareholders, continues to review the strategy of its operations and the resourcing structure. Significant focus and priority has been given to improving the patron experience and marketing efforts to reinvigorate growth. In addition, a number of cost out initiatives, including the streamlining of the corporate office, have been implemented during H2 FY26 and are ongoing . Further initiatives at the properties and re -examination of all aspects of operations including reducing direct and indirect cost pools are ongoing at both the properties and within corporate and are expected to continue to further reduce ongoing operating costs in order to fund increased marketing investments. Authorised by: Board of Directors For further information: Media and Investor Relations David Curry – Group Chief Corporate Affairs Officer (subject to regulatory approvals) Tel: +61 411 510 352
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Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity The Star Entertainment Group Limited ABN Quarter ended (“current quarter”) 85 149 629 023 30 September 2026 Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 1. Cash flows from operating activities 334,366 334,366 1.1 Receipts from customers 1.2 Payments for - - (a) research and development (b) product manufacturing and operating costs (178,122) (178,122) (c) advertising and marketing (10,357) (10,357) (d) leased assets (2,029) (2,029) (e) staff costs (177,493) (177,493) (f) administration and corporate costs (25,803) (25,803) 1.3 Dividends received (see note 3) - - 1.4 Interest received 2,469 2,469 1.5 Interest and other costs of finance paid - - 1.6 Income taxes received - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) 41,511 41,511 1.9 Net cash from / (used in) operating activities (15,458) (15,458) 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) businesses - - (c) property, plant and equipment (5,693) (5,693) (d) investments - - (e) intellectual property - - (f) other non-current assets - -
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 2.2 Proceeds from disposal of: - - (a) entities (b) businesses - - (c) property, plant and equipment - - (d) investments - - (e) intellectual property - - (f) other non-current assets - - 2.3 Cash flows from loans to other entities (5,072) (5,072) 2.4 Dividends received (see note 3) 400 400 2.5 Other (provide details if material) - - 2.6 Net cash from / (used in) investing activities (10,365) (10,365) 3. Cash flows from financing activities - - 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - - 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings (15) (15) 3.7 Transaction costs related to loans and borrowings (125) (125) 3.8 Dividends paid - - 3.9 Non Current Restricted Cash - - 3.10 Net cash from / (used in) financing activities (140) (140)
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. 4. Net increase / (decrease) in cash and cash equivalents for the period 267,087 267,087 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) (15,458) (15,458) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (10,365) (10,365) 4.4 Net cash from / (used in) financing activities (item 3.10 above) (140) (140) 4.5 Effect of movement in exchange rates on cash held (1,686) (1,686) 4.6 Cash and cash equivalents at end of period 239,438 239,438 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 185,706 227,603 5.2 Call deposits 21,558 22,552 5.3 Bank overdrafts - - 5.4 Cage Cash 32,174 16,932 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 239,438 267,087 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 (2,338) 6.2 Aggregate amount of payments to related parties and their associates included in item 2 (6,099) Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities 570,669 570,669 7.2 Credit standby arrangements - - 7.3 Other (Bank guarantees) 15,261 9,280 7.4 Total financing facilities 585,930 579,949 7.5 Unused financing facilities available at quarter end 5,981 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. The Group has a USD390 million ($559.1 million conversion at 30 September 2026) debt facility with WhiteHawk Capital (the Refinancing Facility). The Group also had an outstanding Payment in Kind (PIK Liability) of $11.6 million as at 30 September 2026 owing to Bally's and Investment Holdings. Interest on the PIK Liability accrues and compounds at the rate of 9% per annum. The Group has issued irrevocable notices of conversion of the PIK Liability to each of Bally’s and Investment Hold ings. Subject to shareholder approval at the next AGM, The Star intends to fully satisfy the outstanding PIK Liability by issuing ordinary shares to each of Bally's or its nominee and Investment Holdings. The Group has a $15.3 million bank guarantee facility with Westpac. Note: At 30 September 2026, the Group had total cash and cash deposits of $319 million, comprising $239 million of cash and cash equivalents (as disclosed at item 5 above) and $80 million of restricted deposits. Restricted deposits comprises $48 million he ld in an Interest Reserve Account (to fund the first year to May 2027 of interest payments on the Refinancing Facility), cash backed bank guarantees (property leases and transactional banking facilities), and security relating to workers compensation cover. 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (15,458) 8.2 Cash and cash equivalents at quarter end (item 4.6) 239,438 8.3 Unused finance facilities available at quarter end (item 7.5) 5,981 8.4 Total available funding (item 8.2 + item 8.3) 245,419 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 15.9 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: n/a
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. 8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: n/a 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: n/a Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: .... 27 October 2026.................................................... Authorised by: .... Board of Directors.................................................. (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter , how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.