The Star Entertainment Group Ltd (ASX: SGR) share price is on a wild ride today.
Shares in the All Ordinaries Index (ASX: XAO) casino operator closed down 15.4% on 28 February, trading for 11.0 cents apiece.
That was the last day ASX investors have had to buy and sell Star shares.
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Why were Star shares suspended from the ASX?
The gambling stock entered a trading halt after management was unable to release the embattled company's H1 FY 2025 results as they continued to seek out new sources of cash. Management said at the time they were "continuing to explore possible liquidity solutions".
As you're likely aware, the Star Entertainment share price has fallen hard over the past two or more years amid a range of regulatory issues that threatened to shut down the company's gambling businesses.
Shares returned to trade today.
This follows last week's news that United States-based casino giant Bally's Corporation (NYSE: BALY) and the Mathieson family (via its company Investment Holdings) will subscribe to a $300 million investment in Star.
Star said it received $100 million of this on 9 April. Receipt of further proceeds is subject to approval of Star shareholders, with a meeting planned for late June.
ASX investors initially reacted positively to Star's return to the boards, with shares leaping 13.6% in early trade. But the gains didn't hold. In a volatile morning, shares were down as much as 9.1% before recovering some of those losses.
At the time of writing, shares are changing hands for 10.5 cents apiece, down 4.6%.
Investors will also be poring over Star's belated half-year results (H1 FY 2025), which were released yesterday.
Here's what we know.
Star Entertainment share price pressured amid growing losses
The Star Entertainment share price is likely catching added headwinds, with the company reporting a 25% year-on-year decline in half-year revenue to $650 million. Management said revenue was impacted by "challenging trading conditions due to the implementation of casino operating reforms and further loss of market share".
Earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at a loss of $26 million, compared to positive EBITDA of $114 million in H1 FY 2024. This was driven by an erosion of Star's EBITDA margin to negative 4.1%. That's down from a positive margin of 13.1% in the prior corresponding period.
Underlying net profit after tax (NPAT) plunged from $25 million in H1 FY 2024 to a loss of $136 million in the half year just past, while statutory NPAT came in at a loss of $302 million, down from a positive $9 million.
On the liquidity front, Star had available cash of $98 million as at 11 April, which would appear to include the $100 million the company received on 9 April.
With today's intraday loss factored in, the Star Entertainment share price is down 75% since this time last year.
