Star Entertainment’s share price plummeted 44% after a trading halt was lifted on Friday. [Image: Shutterstock.com]
Star Entertainment is in significant trouble, as its share price dropped 44% when trading resumed on the Australian Securities Exchange (ASX) Monday following a 25-day halt. The ASX suspended trading of the Australian casino company because Star missed the August 31 deadline to release its earnings for the most recent fiscal year. It finally reported its results on Thursday, which led to the removal of the halt.
the Brisbane-based company posting a loss of AU$1.69bn (US$1.16bn)
The figures weren’t pretty, with the Brisbane-based company posting a loss of AU$1.69bn (US$1.16bn) for the year. To help with cash flow issues, Star recently secured AU$200m (US$138m) in loans to keep it going, albeit at a steep 13.5% interest rate. More loans may be necessary in the near future.
A reason for the delay was the release of a report following a second government inquiry into Star’s activities in New South Wales (NSW). SC Adam Bell found Star to still be unfit to operate a Sydney casino as it hasn’t made sufficient progress toward the remediation efforts proposed by the first report in August 2022. It faces another AU$100m (U$69m) fine and an uncertain future as a result.
