Australia's Star Entertainment posts multi-billion-dollar loss | Jessica Amir on Reuters

In a Reuters article titled “Australia's Star Entertainment posts a multi-billion-dollar loss, weighs asset sales,” moomoo strategic analyst Jessica Amir commented, “It will be a tough time ahead. Australians have depleted their savings and the ratio of savings to net income has hit a new low.”

Australia’s second-largest casino operator, Star Entertainment (SGR.AX), has reported multi-billion-dollar losses for the second consecutive year, and the company has indicated it may sell assets to raise cash, underscoring the precarious state of the industry.

This situation stems from several key factors. Firstly, “challenging trading conditions” and regulatory changes, such as mandatory cashless gambling, have resulted in a loss of A$1.4 billion in value across the company’s casinos in Sydney, Brisbane, and the Gold Coast. Secondly, the COVID-19 pandemic led to prolonged casino closures and a freeze in tourism, severely impacting revenue. Thirdly, discretionary spending among gamblers has been eroded by rising costs of energy, mortgages, and groceries.

Jessica Amir reiterated that in addition to Australians’ savings being depleted if Star Entertainment fails to see the return of Chinese tourists, the market may question how the company can maintain the interest rates on its recently secured debt package, as Chinese visitors previously accounted for a significant portion of its revenue.

Click the link to read the full article：reuters.com/bus...