Star Entertainment shares slump on revenue fall
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More news: Shares in Star Entertainment fell in morning trading after the casino operator reported a slide in revenue for the March quarter.
Star shares were down 6.9% to 50 cents by 11:50am AEDT. It's the latest tumble in a challenging period for the group, which has seen its share price slashed around 60% over the last 12 months.
Star casino revenue slides on weak premium gaming results
The news: Star Entertainment reported a slide in revenue for the March quarter, as income from its premium gaming rooms weighed on results.
The numbers: The casino operator's total net revenue for the quarter was $419.2 million, down 4.6% compared to the prior corresponding period.
Premium gaming room (PGR) revenue at The Star Sydney saw a 19.3% drop compared Q3 FY23, while PGR at The Star Gold Coast and Treasury Brisbane dropped 20% and 28% respectively.
Main gaming floor revenue performed strongly at all of the Star's properties, rising 5.4% at The Star Sydney, 4.6% at The Star Gold Coast and 6.4% at Treasury Brisbane year on year.
However, the Star's net loss after tax of $6.8 million for the quarter was an 86.4% reduction on the $49.7 million loss posted for the same period last year.
The context: The Star said it has increased resourcing in the risk, controls and transformation teams to strengthen the control environment of its casinos. It also noted that negotiations for the sale of assets, including the Treasury Brisbane casino and hotel, are progressing and an update will be provided "in due course".
Last month, the Star's CEO Robbie Cooke announced his departure from the casino group as the company awaits news on the outcome of an inquiry into whether it should retain its licence.
The Star is currently facing a second inquiry into its suitability to operate casinos in NSW as well as other regulatory challenges in Queensland. It is also in the midst of refinancing project debt for its Queens Wharf development in Brisbane, which the group said is on track for a phased opening in August.
The source: ASX announcement
