Endeavour Shares Slump Toward Record Low Amid Gaming-Machine Reforms
By Stuart Condie
SYDNEY--Shares in Australian hospitality operator Endeavour Group are on course for their lowest close ever after Victoria's state government announced tighter restrictions on gaming machines.
The stock was down 10% at 5.62 Australian dollars (US$3.84) midway through Monday's trading session. The decline wiped more than A$1 billion from the market capitalization of the group, which spun out of supermarket operator Woolworths in 2021.
The state government in Victoria, which is Australia's second-most populous state, said at the weekend that it will overhaul electronic gaming-machine regulations. Reforms include restricted opening hours for venues containing machines and slashing the maximum amount that gamblers can put in.
E&P Financial analyst Phillip Kimber estimated that Endeavour's fiscal 2024 net profit would fall by 3% for every 10% reduction in Victorian electronic gaming-machine revenue.
Endeavour reported a net profit of A$495 million in fiscal 2022. In February, it reported a A$364 million net profit for the first half of fiscal 2023, up 17% on year.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
July 16, 2023 23:16 ET (03:16 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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