Star Entertainment shares dive on Q1 earnings hit
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The news: Shares in Star Entertainment slumped at market open after reporting a slide in first-quarter earnings after close of trading on Tuesday.
The numbers: Star shares fell 5.7% to 25 cents by 10:55am AEDT, having dropped over 50% since January.
Star reported a Q1 EBITDA loss of $18 million, down from positive EBITDA of $62 million in the previous corresponding period. Q1 revenue of $351 million was down 18% year on year.
The context: Star said that it continues to experience a deterioration in operating performance, owing to a "challenging operating environment" and the continued implementation of mandatory carded play and cash limits at its casinos.
The gambling group also noted that it continues to engage constructively with the the NSW Independent Casino Commission over the operations of its Sydney casino while its licence remains suspended, after the regulator imposed a $15 million pecuniary penalty on the casino operator earlier this month.
Star said it continues to work with its lenders to finalise long-form documentation for the a new debt facility, which will provide up to $200 million in additional liquidity.
The source: ASX announcement
