2 days ago
Star Entertainment warns tough conditions after larger annual loss
Star Entertainment, which runs casinos in Australia, lost a lot of money this year.
Its loss was smaller than last year’s loss but still worse than experts expected.
The company said business remains difficult, especially for table games in New South Wales.
It is also dealing with government investigations and a possible penalty.
Star has debt that it needs to manage.
However, revenue at two of its casinos grew in July.
Investors reacted negatively, and the company’s shares fell.
Star says it is working to become profitable again.
Star Entertainment reported a statutory annual net loss of A$307.3 million for the year ended June 30.
The loss was smaller than the previous year’s A$427.9 million but exceeded the A$180 million consensus estimate.
The company cited weak New South Wales table-gaming revenue, regulatory action and external debt pressures.
Star said combined revenue at The Star Sydney and The Star Gold Coast rose 6% in July.
Shares fell 3.9% after the results, while Star continues responding to money-laundering concerns and a pending penalty.
- Who
- Star Entertainment, an Australian casino operator, along with regulators and former CEO Matthias Bekier.
- What
- The company reported a larger-than-expected annual loss and warned that difficult conditions would continue.
- Where
- Australia, including New South Wales, The Star Sydney and The Star Gold Coast.
- When
- The results covered the year ended June 30 and were reported on Aug. 31; July revenue also increased 6%.
- Why
- Weak New South Wales table-gaming revenue, regulatory scrutiny, a pending penalty and external debt weighed on the outlook.
Key facts
- Annual net loss
- A$307.3 million for the year ended June 30.
- Previous-year loss
- A$427.9 million.
- Analyst estimate
- A$180 million consensus estimate from Visible Alpha.
- July revenue
- Combined revenue at The Star Sydney and The Star Gold Coast rose 6%.
- Share-price reaction
- Star shares fell 3.9% at 0044 GMT, while the broader benchmark was largely flat.
- Debt refinancing
- Star completed refinancing with a $390 million secured term loan from WhiteHawk.
- Former CEO penalty
- An Australian court banned Matthias Bekier from managing companies for six years and fined him A$700,000.
Sources
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