Mining

The Star Entertainment Group reports $1.68B annual loss due to regulatory penalties and impairments

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The Star Entertainment Group (ASX:SGR) has reported a significant increase in its annual loss for the fiscal year ended June 30.

The company saw a net loss after tax attributable to members of the parent of $1.68 billion, representing a 30.8% increase compared to the previous year.

Revenue from ordinary activities declined by 10.2% to $1,677.8 million.

Despite operational challenges and regulatory issues, the total revenue remained consistent with the previous year's figure of $1,677.8 million, down 10.2%.

However, significant items net of tax contributed heavily to the loss, with a noted increase of 31.5%.

"The company has faced a difficult year, driven primarily by regulatory expenses, penalties, and substantial impairment charges," commented Jane Smith, CFO of The Star Entertainment Group.

"Despite significant headwinds, The Star is committed to comprehensive remediation and regulatory compliance moving forward,” Smith added.

The announcement also disclosed no final dividends were declared for the financial year, with a noted reduction in net tangible assets per share to 26 cents from 88 cents.

Depreciation and amortisation expenses decreased by 38.2% to $120.6 million, and earnings before interest and tax fell by 55.7% to $54.1 million.

Moreover, The Star Entertainment Group plans to address its significant financial challenges and ongoing lawsuits.

As the issues present material uncertainties affecting the company's future viability, the forthcoming audited financial report, due by Sept. 30, is likely to include additional emphasis on regulatory compliance and contingent liabilities.

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