April 28 (Reuters) – Embattled Australian casino operator Star Entertainment swung to a third-quarter loss from a profit in the prior three-month period, hurt by seasonal weakness and lower table games revenue, sending its shares more than 2% lower on Tuesday.
The company reported a loss before interest, taxes, depreciation and amortization of A$1 million ($718,600.00) for the three-month period ended March 31, compared to a profit of A$6 million in the previous quarter.
The results reflected continued softness at its table games in Star Sydney and Star Gold Coast, Star said in a statement.
Revenue slipped 12% to A$266 million, hit by seasonal softening and reduced levels of gaming visitation in Sydney.
Shares of the company were down 2.2% at A$0.113, as of 0025 GMT, although the company narrowed its loss from A$24 million a year earlier, helped by cost savings and higher operator fee revenue.
Star said its new leadership team had launched measures to reduce costs, along with supplier expenses at each of its properties.
“The Star, in consultation with its major shareholders, continues to review the resourcing structure and strategy of its operations,” the company said.
“Further cost-out initiatives at the properties and re-examination of all aspects of operations, including reducing indirect cost pools, are ongoing and are expected to continue to further reduce ongoing operating costs.”
The company still flagged material uncertainty regarding its ability to continue as a going concern, being dependent on the outcome of several material uncertainties, including the refinancing agreement for $390 million from funds associated with WhiteHawk Capital Partners at the end of March.
It had A$90 million in available cash as of March 31.
($1 = 1.3916 Australian dollars)
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Subhranshu Sahu)
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