Australia’s Star Entertainment posts smaller quarterly loss

(Reuters) -Australia’s Star Entertainment posted a smaller second-quarter loss on Monday compared with the previous three-month period, as the casino operator benefited from its cost-out programme and strong December performance.

The debt-laden gaming firm has been grappling with various issues including multiple regulatory inquiries and long closures of casinos.

Shares of the company fell 3.6% to A$0.135 by 2355 GMT, while the benchmark stock index was up 0.4%.

Star reported a loss before interest, tax, depreciation and amortisation of A$8 million ($4.95 million) excluding significant items for the three-month period ended December, compared with an EBITDA loss of A$18 million in the first quarter.

Star, which is in the middle of a cash crunch, reported an 18% decline in its operating expenses to A$52 million, citing lower corporate costs, among others.

The embattled casino operator also said its available cash was A$78 million at December-end.

“The results for the period reflect continued weakness in the operating performance of the group due to the ongoing challenging consumer environment…. costs associated with ongoing remediation activities,” the company said in a statement.

The Brisbane-headquartered firm posted a 15% fall in revenue to A$299 million from the last quarter.

($1 = 1.6150 Australian dollars)