Australia’s Star Entertainment posts narrowest quarterly loss.

(Reuters) – Australia’s Star Entertainment posted a smaller second-quarter loss on Monday compared to the previous three-month period, the casino operator benefiting from its cost-out program and a strong December performance.

The debt-laden gaming giant has been struggling with a number of issues, including multiple regulatory inquiries and the prolonged closure of casinos.

The company’s shares fell 3.6% to A$0.135 at 2355 GMT, while the benchmark stock index rose 0.4%.

Star reported interest, taxes, depreciation and amortization of $8 million ($4.95 million) in items for the three months ended December, compared with an EBITDA loss of $18 million in the first quarter.

Star, amid a cash crunch, reported an 18 percent drop in operating expenses, citing lower corporate costs and other factors.

The embattled casino operator said it had $78 million in cash at the end of December.

“The results for the period reflect continued weakness in the group’s operating performance due to the ongoing challenging consumer environment … costs associated with ongoing corrective actions,” the company said in a statement.

The Brisbane-headquartered firm posted a 15% drop in revenue to $299 million from the previous quarter.

($1 = 1.6150 Australian dollars)

(Reporting by Rajashik Mukherjee in Bengaluru; Editing by Diane Craft and Subhanshu Sahu)