mike cherney
SYDNEY – Australian casino operator Star Entertainment Group Ltd. has posted a huge half-year loss as it faces regulatory challenges and new competition in the Sydney market.
Star said it had a net loss of A$1.26 billion ($860 million) in the six months to December, compared with a loss of A$74 million in the previous period, by statutory standards. As previously noted, it said the current results included a substantial impairment charge related to its Sydney casino.
Star said revenue from general events rose about 75 per cent to $1 billion. Normalized net profit, which reflects the underlying performance of the business, was almost A$44 million, compared with a loss of A$74 million the previous year.
The company has not declared an interim dividend.
Star previously said the impairment charge would stem from operational changes following a government review and the possibility of an increase in state casino tariffs. The Star’s Sydney casino is also facing competition from a new casino operated by rival Crown in the city.
Trading in the company’s stock was suspended pending an announcement.
Write to Mike Cherney: mike.cherney@wsj.com