Oct 27 (Reuters) – Australian casino operator Star Entertainment swung to a first-quarter profit on Tuesday, underpinned by cost-cutting measures and strong performances at its Sydney and Gold Coast operations.
• Star posted consolidated earnings before interest, taxes, depreciation and amortisation of A$12 million ($8.42 million) for the three-month period ended September 30, a turnaround from a loss of A$13 million in the year-ago period
• Its Sydney and Gold Coast casinos generated more than 98% of first-quarter consolidated revenue, which rose 2% to A$284 million
• The embattled company said it had A$239 million in cash and cash equivalents, as of September 30, and was continuing operational improvement efforts
• “We now expect to start building cash reserves in FY27, before non-operating items,” Star CEO Bruce Mathieson Jr said in a separate announcement
• The firm also reiterated that Sydney casino’s licence remains suspended and that the manager’s appointment has been extended to June 30, 2027
• Shares of the company jumped as much as 17.4% to A$0.135, logging their biggest intraday gain since December 18
($1 = 1.4249 Australian dollars)
(Reporting by Keshav Singh Chundawat in Bengaluru; Editing by Sherry Jacob-Phillips)
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