Star Entertainment swings to Q2 EBITDA profit

The news: Star Entertainment swung to profit in the second-quarter as the casino operator benefitted from improved trading in Sydney, stronger volumes on the Gold Coast and a higher operator fee for The Star Brisbane.

The numbers: The Star reported Q2 revenue of $301 million, up 6% compared to the previous quarter, and quarterly EBITDA of $6 million before significant items, compared to an EBITDA loss of $13 million in Q1.

The context: The company warned operating conditions "remain challenging" due to the impact of mandatory carded play and cash limits in New South Wales and stricter regulatory requirements across all its properties.

What they said: "The group's ability to continue as a going concern remains dependent on the outcome of numerous material uncertainties ... some of which are interdependent and outside The Star's control," the company said.