Star Entertainment has reported a net loss of $307 million, as its auditor flagged renewed uncertainty over the company's survival. The massive deficit deepens the crisis facing the casino group, which has been hammered by regulatory probes, customer exodus, and mounting debts.
Star boss Bruce Mathieson Jnr acknowledged the challenges confronting the group, which is expected to soon learn the result of a penalty for repeated breaches of anti-money laundering laws. The fine, which could run into hundreds of millions of dollars, threatens to further strain the company's already fragile balance sheet.
The auditor's going-concern qualification means there is material uncertainty about whether Star can continue to pay its debts and operate as a viable business. The company has been searching for new capital or a potential buyer, but the deepening losses and regulatory overhang make a rescue deal increasingly difficult.
Star has previously been found unfit to hold a casino license in New South Wales and Queensland, forcing it to operate under strict supervision. The company has sold assets and cut costs to preserve cash, but the $307 million loss suggests those measures have not been enough to reverse its fortunes.
The group's shares have been trading at penny-stock levels, and investors are bracing for further pain as the regulator's decision on the money laundering fine is handed down.