The Star shares extend losses as Morningstar slashes valuation
Monday 04 de November 2024 / 12:00
⏱ 1 min read
(Sydney).- Star Entertainment extended losses on the ASX as Morningstar slashed its fair value estimate on the casino operator and halved its full-year earnings forecast.
Star shares were down 5.88% to 24 cents by 1:30pm AEDT. The casino operator closed 3.8% lower on Wednesday, after the group reported an 18% slide in revenue, a 10% rise in operating costs, and an EBITDA loss of $18 million for the first quarter.
Morningstar lowered its fair value estimate from 67 cents to 50 cents, with around 45% of the downgrade due to lower earnings forecasts, 40% due to a more dilutive equity raise, and around 15% driven by the "prohibitive" interest rate of 13.5% on the Star's debt facilities.
Morningstar halved its FY25 EBITDA forecast to $67 million, with its FY26 and FY27 forecasts reduced by about a third.
Morningstar analyst Angus Hewitt said that while the Star's shares are "materially undervalued", conditions have deteriorated "further than expected" for the group, and the impact of mandatory cards and cash limits is worsening.
However, Morningstar expects the Star to deliver "strong earnings growth" over the next decade, Hewitt said, buoyed by the recovery from pandemic-induced lows, the ramp-up of its Queen's Wharf and Gold Coast growth projects, and solid performance from its Sydney property.
Categoría:Casino
Tags: Sin tags
País: Australia
Región: Oceania
Event
GAT EXPO CARTAGENA 2026
24 de March 2026
NOVOMATIC drives the growth of the Colombian market at GAT Cartagena 2026
(Cartagena).- Following a standout participation at GAT Cartagena 2026, NOVOMATIC Gaming Colombia reaffirmed its leadership in the Latin American gaming industry by combining a strong technological showcase with the launch of linked progressive jackpots and active involvement in regulatory discussions shaping the future of the slot machine sector in the country.
Thursday 02 Apr 2026 / 12:00
Trade Associations and Governments in Latin America: The Gaming Sector Calls for Technical Dialogue and Regulatory Predictability
(Cartagena de Indias, SoloAzar Exclusive).- Cartagena de Indias was the stage for an intense debate on the role of gaming associations in shaping public policy, where regional leaders agreed on the need to strengthen dialogue with governments, warned about unilateral decisions that affect the sustainability of the industry, and proposed an evolution of trade associations into key technical actors in the region.
Wednesday 01 Apr 2026 / 12:00
Technology, AI and Traceability: Keys to the Future of Gaming at the GAT Expo Cartagena Suppliers Panel
(Cartagena de Indias, SoloAzar Exclusive).- Within GAT Expo Cartagena 2026, technology sector leaders analyzed the challenges and opportunities of the gaming industry during the panel “Innovation, Traceability and Control”.
Tuesday 31 Mar 2026 / 12:00
SUSCRIBIRSE
Para suscribirse a nuestro newsletter, complete sus datos
Reciba todo el contenido más reciente en su correo electrónico varias veces al mes.