Star Entertainment Battles Cashflow Woes Amid Revenue Decline

The Star Entertainment Group Limited (ASX: SGR) faces "material negative cashflow," according to new CEO Steve McCann. The company reported an unaudited group EBITDA loss of $27 million in the first four months of the financial year. This downturn is attributed to regulatory changes, including mandatory playing cards and lower pokie cash limits, along with a challenging consumer environment. To access a critical $150 million capital tranche, Star is planning significant structural changes, delegating strategic and operational decisions to leadership teams across Brisbane, Gold Coast, and Sydney, overseen by state-based boards.

Despite these challenges, Star’s shares rose 7.1% to 22.5¢ in early trading at the time of writing, signaling cautious investor optimism. McCann urged shareholders for patience and trust as the company navigates this transformative phase.

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