Star Entertainment Reports Second-Quarter Loss, Deepening Uncertainty
Troubled casino operator Star Entertainment Group Limited (ASX: SGR) announced a loss in the second quarter, further clouding its future plans for a major revamp and earnings recovery.
For the three months ended December 31, 2022, Star reported a loss before interest, tax, depreciation, and amortization (EBITDA) of AU$8 million (excluding significant items), or approximately US$4.95 million at current exchange rates.
This loss adds to the ongoing uncertainty surrounding Star Entertainment's plans to implement a A$1.3 billion transformation strategy and restore profitability. The company has been facing regulatory scrutiny and legal challenges in recent months, casting doubt on its ability to successfully execute the turnaround.
Investors remain apprehensive about Star Entertainment's future prospects, with its shares underperforming the broader market in recent trading. The company's ability to regain the confidence of stakeholders and regulators will be crucial to its long-term success.