The Star Entertainment Corp said on Wednesday the troubled Australian gaming operator swung to an operating loss in the third quarter due to weak seasonality, fewer casino visitors and March storms that closed casinos in Queensland.
The company reported an earnings before interest, tax, depreciation and amortization (EBITDA) loss of A$21 million ($13.41 million) for the quarter ended March 31, compared with an EBITDA profit of A$38 million a year earlier.
Quarterly revenue before significant items fell 35% to A$271 million from a year earlier.
Operating expenses fell 3% quarter-on-quarter due to lower costs and a related reduction in production at the company.
Shares rose 2.4% to A$0.1075 as of 0046 GMT, outperforming the benchmark index’s 0.2% gain.
The company warned that “significant uncertainty” remained about its ability to continue as a going concern and stressed the need to take several key actions to bolster its liquidity position.
Earlier this month, Star agreed to a $300 million rescue package from US group Bally’s and the Mathieson family, Star’s largest investors.
In June, shareholders will consider approving part of Bally’s investment, which would give the US casino group control of 56.7 per cent of The Star.
Star said completing the strategic investment was essential to its survival as one of its major near-term initiatives, along with securing proceeds from the Sydney Event Centre sale and completing its exit from the DBC joint venture.
($1 = A$1.5657)
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