Star profit drops 43 in H1, but beats estimate
Co39;s shares rise more than 5 in early trade
Co warns of weaker H2

Feb 29 Reuters Australian casino operator Star Entertainment posted a smallerthanexpected drop in firsthalf profit on Thursday amid intense competition and lower discretionary spending, sending its shares sharply higher in early trade.

Shares of the cashstrapped casino operator jumped more than 5 to A0.505 by 0015 GMT, outperforming the benchmark stock index which was down 0.2.

Star posted A25 million 16.24 million in normalised net profit after tax attributable for the six months ended Dec. 31, down 43 from the A43.6 million reported a year earlier. However, that beat an estimate of A15.3 million, according to LSEG data.

The profit beat comes at a time when trading conditions have been tough for the company. Competition with larger rival Crown Resorts has been intense, while compliance costs associated with Sydney operations have been consistently weighing on margins.

Revenue from Star39;s Sydney operations came in at A450 million, down 16.9 from a year earlier as the company grappled with lower consumer spending and elevated remediation costs to prove it is capable of returning to suitability.

Star, which faces several lawsuits and fines over alleged breaches of antimoney laundering and counterterrorism financing rules, expects operation costs to be higher in the second half compared with the first six months as it ramps up spending to meet its…