(Reuters) -Australia’s embattled casino operator Star Entertainment reported a bigger-than-expected first-half loss on Tuesday, as remediation costs continue to bite even though it has a rescue package already underway.
The firm published its results six weeks after an end-February deadline, owing to uncertainty around its ability to continue as a company, as it holds A$98 million in available cash as at April 11.
Remediation costs for meeting stricter regulations and weaker discretionary spending by consumers bled Star Entertainment dry, resulting in a loss of A$136 million ($86.2 million) on an underlying basis for the six months ended December 31.
The Visible Alpha consensus was for a loss of A$93.9 million.
Star Entertainment had reported an underlying profit of A$25 million in the same period a year earlier.
Last week, the casino group agreed to an A$300 million rescue package from U.S. group Bally’s, with the refinancing proposal coming as a lifeline after a loan from investment group Salter Brothers Capital collapsed earlier this month.
Star said in its statement that “long-form documentation” for Bally’s investment is targeted in the next week, with a shareholder meeting set for late June.
Star saw a deterioration in revenue in the third quarter of the fiscal year from reduced gaming visits and adverse weather events, with its Sydney casino’s revenue declining 8% in the third quarter compared to the second quarter.
($1 = 1.5780 Australian dollars)
(Reporting by Shivangi Lahiri and Adwitiya Srivastava in Bengaluru; Editing by Alan Barona, Rashmi Aich and Mrigank Dhaniwala)
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