(Reuters) -Australia’s Star Entertainment flagged near-term liquidity necessities on Thursday and stated it will look to lift capital, after the on line casino operator reported a 71% drop in annual revenue because of difficult buying and selling situations.
The beleaguered agency had A$130 million ($88.97 million) in money as of August-end, however would require extra capital for group operations at present buying and selling ranges, restructuring actions and outflows relating to regulatory issues.
“Star continues to assess additional avenues to further support its liquidity position, including other potential capital sources such as subordinated debt,” the corporate stated in an announcement.
Star secured on Wednesday a two-tranche debt lifeline of as much as A$200 million, with a right away A$100 million injection to take care of price blowouts the gaming group is going through at its new Queens Wharf resort in Brisbane.
Its underlying post-tax revenue fell to A$12 million within the 12 months ended June 30 from A$41 million within the prior 12 months.
The corporate didn’t declare a last dividend, in line with the earlier corresponding interval.
Star stated its buying and selling efficiency deteriorated over the second half of the monetary 12 months 2024, and it continued into the present fiscal.
The cash-strapped on line casino agency has been plagued with tighter regulatory controls, visitor administration, and governance compliance prices over the previous two years following alleged breaches of anti-money laundering and counter-terrorism financing guidelines.
Buying and selling was suspended in Star shares earlier this month, after the corporate didn’t lodge its annual report for fiscal 12 months 2024. The shares are anticipated to renew commerce this week.
($1 = 1.4611 Australian {dollars})
