Australia’s Star posts quarterly loss amid regulatory challenges; shares are owned by Investing.com

Investing.com– Shares of Star Entertainment Group Ltd (ASX:) fell on Monday after the company reported a second-quarter loss amid regulatory concerns.

The Australian casino operator reported a loss before interest, tax, depreciation and amortization of A$8 million for the quarter ended December 31, an improvement from a loss of A$18 million in the first quarter.

Star shares fell nearly 4% to A$0.135 on Monday.

The loss narrowed as operating expenses declined during the quarter, reflecting efforts to streamline operations amid a tough consumer environment. However, revenue fell 15% to A$299 million, reflecting continued pressures on the company’s top line.

The company has faced many questions regarding its operations, particularly regarding its failure to comply with laws related to anti-money laundering and governance procedures.

In order to stabilize its business, Star Entertainment has implemented cost-cutting measures and operational efficiency, but persistent headwinds such as weak consumer confidence, weak gaming performance, and turnover of control continue to balance the chances of recovery.