[SYDNEY] Star Entertainment Group finally released its long-delayed first-half results, showing it posted a A$136 million (S$114 million) loss and that trading conditions continue to deteriorate across its casinos.
Revenue plunged 25 per cent to A$650 million in the six months ended Dec 31, Star said on Tuesday (Apr 15). It has continued to weaken, falling 9 per cent in the first three months of this year, hit by cash limits at its Sydney complex and challenging trading conditions at its Gold Coast casino.
The embattled company last week agreed to a A$300 million funding deal with Bally’s that would potentially hand control to the US casino group after other refinancing plans collapsed. However, it again reiterated that there is “material uncertainty regarding the group’s ability to continue as a going concern”.
It needs to complete the Bally’s deal, access cash from the sale of its Sydney events centre and finalise a deal to exit its Brisbane resort, it said.
Star’s shares have been suspended since Feb 28, when the company failed to meet the deadline to lodge its accounts. Almost A$4 billion has been wiped from the company’s market capitalisation since late 2021, leaving the company valued at just A$315 million.
Star’s troubles started in October 2021, when the Sydney Morning Herald reported Star had enabled suspected money laundering, organised crime and fraud at its casinos for years. Since then, regulatory inquiries have found it unsuitable to operate its Sydney and Queensland casinos, placing them under government supervision. BLOOMBERG
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