Australia’s Star Entertainment plunges after multi-billion-dollar loss

(Reuters) – Shares in Australia’s no.2 casino operator Star Entertainment slumped over 50% to a record low on Friday, as it resumed trading a day after posting a second straight multi-billion-dollar annual loss on a write-down in its venues’ value.

The company wiped A$1.4 billion ($963.90 million) from the value of its casinos in Sydney, Brisbane and the Gold Coast because of “challenging trading conditions” and regulatory changes such as a switch to mandatory cashless gambling.

Star’s annual statutory net loss after tax came in at A$1.69 billion for the full year ended June 30, from A$2.44 billion in the prior year.

“The earnings collapse is worse than we expected,” Morningstar said in a note, adding that it was cutting its 2025 earnings forecast for the company by a third.

“We also lower our longer-term earnings as Star looks much less profitable given the current tighter regulatory regime.”

The stock fell as much as 54.4% to A$0.205 by 0032 GMT.

Trading in Star shares was suspended on Sept. 2 by the Australian bourse operator after the company failed to lodge its annual report for fiscal 2024 by the required due date.

($1 = 1.4524 Australian dollars)