News: SGR UPDATE 1-Australia's Star Entertainment first-half profit drops 43%

(Adds details on results)

Feb 29 (Reuters) - Australia's Star Entertainment Group (SGR) on Thursday posted a drop in first-half profit, as the cash-strapped casino operator was hurt by weaker consumer discretionary spending and higher competition.

The company posted A$25 million ($16.24 million) in normalised net profit after tax attributable for the six months ended Dec. 31, compared with A$43.6 million last year.

That beat a profit of A$15.3 million as per LSEG IBES data. The result comes amid operational complexities at the company's Sydney casino, which is embroiled in multiple regulatory enquiries intended at questioning Star's ability to operate and manage its highest-revenue generating segment.

Revenue from Star's Sydney operations for the first half stood at A$450 million, down 16.9% from a year earlier, as it was affected by operating restrictions, lower spending and elevated remediation costs.

Consumer spending at Star's Gold Coast operations in Queensland eased from the post-COVID 19 surge seen in 2023 as domestic leisure travel dropped. This led to a 13.6% fall in Gold Coast revenue. ($1 = 1.5396 Australian dollars)