Star Entertainment posts $2.4 billion loss amid write-downs and regulation

The news: Casino owner-operator Star Entertainment has reported a $2.44 billion loss as write-downs and nine-figure regulatory costs scuppered an improved earnings performance.

The numbers: Star lifted gross revenue 22% to $1.87 billion, outperformed earnings guidance and recorded a net profit after tax of $41 million before significant items. However, significant items included a non-cash impairment of $2.17 billion at its Sydney, Gold Coast and Brisbane casinos and a further $595 million in legal and regulatory costs.

The context: In February, the NSW Independent Casino Commission suspended Star's Sydney casino license and issued a $100 million fine over money laundering breaches. Earlier, the previous NSW Coalition government increased casino duty rates, which were later halved by the subsequent Labor government after Star complained the rate hike would force the venue's closure.