Australia’s Star Entertainment collapses after multibillion-dollar loss By Reuters

(Reuters) – Shares in Australia’s No.2 casino operator Star Entertainment fell more than 50 percent to a record low on Friday as it resumed trading a day after posting a second loss consecutive multi-billion dollar annual discount to its value. value of locations.

The company wiped $US1.4 billion ($963.90 million) off the value of its Sydney, Brisbane and Gold Coast casinos due to “challenging trading conditions” and regulatory changes such as the move to cashless gaming mandatory.

Star’s annual statutory net loss after tax was $1.69 billion for the full year ended June 30, up from $2.44 billion a year earlier.

“The earnings collapse is worse than we expected,” Morningstar said in a note, adding that it was cutting its 2025 earnings forecast for the company by a third.

“We are also reducing our long-term earnings as Star looks much less profitable given the current tighter regulatory regime.”

Shares fell as much as 54.4% to $0.205 by 0032 GMT.

Trading in Star shares was suspended on September 2 by the Australian stock exchange operator after the company failed to file its annual report for the 2024 fiscal year by the required due date.

($1 = 1.4524 Australian dollars)