Star Entertainment announced on Wednesday that it recorded an operating loss in the third quarter, impacted by seasonal downturns, declining casino traffic, and Queensland property closures due to March storms.
For the quarter ending March 31, the company posted a loss of A$21 million ($13.41 million) in earnings before interest, taxes, depreciation, and amortization (EBITDA), a sharp drop from the A$38 million profit it reported in the same period last year. Quarterly revenues, excluding significant items, fell by 35%, dropping to A$271 million from the previous year.
Operating expenses decreased by 3% sequentially, driven by lower corporate costs and reductions tied to lower business volumes.
Despite the challenges, Star’s shares rose 2.4%, reaching A$0.1075 by 0046 GMT, outperforming a 0.2% rise in the broader market index.
However, the company warned of “material uncertainty” about its future, citing several crucial actions needed to improve its liquidity. Earlier this month, Star secured a A$300 million rescue package from U.S. casino operator Bally’s and the Mathieson family, its largest investor.
In June, shareholders will vote on a portion of Bally’s investment, which would give the U.S. company control of 56.7% of Star. Star has stressed that completing this investment is vital to its survival, along with finalizing the sale of the Sydney Event Centre and exiting its DBC joint venture.
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