Embattled casino operator Star Entertainment has announced an eye-watering profit loss as the business’s woes continue.
In its latest earnings update Star Entertainment told the market that it lost $471.5m for the 12-months until June 30.
Losses after significant items came in at $212.4m.
The casino has $189m in available cash as of Monday, $45m less than it had as of June 30, although that is partly due to paying $16m in back taxes.
The business also flagged group revenue declined 29 per cent to $1.18bn on the back of plummeting gaming revenue.
Star Entertainment cited regulatory reforms, ongoing remediation costs, loss of market share and the closure of the Treasury Brisbane Casino as factors behind its falling revenue.
Group chief executive and managing director Steve McCann said the company needed numerous things to go in its favour if it was to survive.
“Our announcement today highlights a number of key interdependencies that are critical to the
group’s future,” he said.
“Without that support it will be difficult to navigate the various challenges facing the group and to create a sustainable future for the business.”
On Wednesday, Star Entertainment confirmed the backers of a $430m loan had not granted waivers that would allow the business to breach the terms of its debt.
A waiver grants a company the freedom to breach those terms without penalty.
Star’s lenders include Washington H Soul Pattinson, Macquarie and Deutsche Bank.
These include a $300m bailout from US casino operator Bally’s, which has made its speciality picking up “distressed” casinos.
Star Entertainment has relied on lifelines after a money-laundering scandal led to a $400m AUSTRAC fine.
US casino giant Bally’s lobbed a $300m takeover bid for majority control of Star in April.
Bally’s chief executive Soo Kim said his company was prepared to “invest significant time and resources” to return Star to “profitability and sustainability”.
Bally’s operates 19 resorts and casinos across the US, including casinos in gaming meccas Las Vegas and Atlantic City.
Star’s board backs Bally’s proposal, but it must receive shareholder and regulatory approval.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source au.finance.yahoo.com ’
