Australia’s Star Entertainment flags liquidity need, posts lower profit By Reuters

(Reuters) – Australian casino operator Star Entertainment posted a 71% drop in annual profit on Thursday, hurt by tighter regulatory restrictions, higher operating expenses and weak consumer spending.

The cash-strapped casino firm has been plagued with tighter regulatory controls, guest management, and governance compliance costs over the past two years following alleged breaches of anti-money laundering and counter-terrorism financing rules.

Star secured on Wednesday a two-tranche debt lifeline of up to A$200 million ($136.80 million), with an immediate A$100 million injection to deal with cost blowouts the gaming group is facing at its new Queens Wharf resort in Brisbane.

Underlying post-tax profit fell to A$12 million in the year ended June 30 from A$41 million in the prior year.

The company did not declare a final dividend, consistent with the previous corresponding period.

($1 = 1.4620 Australian dollars)