Monday, September 16, 2024

Why Aussie Broadband, Bellevue Gold, Lifestyle Communities, and Star shares are falling

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another strong gain. At the time of writing, the benchmark index is up 0.9% to 8,029.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is down 17% to $2.96. Investors have been selling this broadband provider’s shares following the release of its guidance for FY 2025. Aussie Broadband is guiding to EBITDA of $125 million to $135 million. This includes a $10 million investment in a new digital-first challenger brand, Buddy. The new offering leverages artificial intelligence (AI) to manage connections, upgrades, outages and usage through an app, website, and live chat. The AI-enhanced program is targeting 100,000 customers within three years.

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is down 4.5% to $1.94. This has been driven by the release of the gold miner’s quarterly update this morning. Bellevue revealed that its production ramp up remains on track with total production of 42,705 ounces and gold sold of 44,418 ounces during the quarter. This means that production for the six months to 30 June 2024 came to 80,043 ounces, which was around the midpoint of its guidance range of 75,000-85,000 ounces. It seems that the market was expecting stronger production for the period.

Lifestyle Communities Ltd (ASX: LIC)

The Lifestyle Communities share price is down almost 17% to $10.48. This follows media reports alleging that some retirees feel trapped with their land lease communities contracts. Lifestyle Communities responded to the reports, stating that it has “been engaging with the group of homeowners since February 2024. The homeowners have not been satisfied with our responses and have made applications to the Victorian Civil and Administrative Tribunal (VCAT).” It also adds that it “takes its compliance obligations extremely seriously and has obtained legal advice throughout its 21 years to ensure it operates in accordance with relevant legislation, and its policies are consistent with other industry operators.”

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is down over 1.5% to 50.2 cents. This has been driven by news that the casino operator has been forced to pause electronic gaming due to a software issue. It notes that following planned upgrades, certain systems have been disrupted due to system performance issues identified in post-upgrade testing. Electronic gaming machines will remain offline until the issue is resolved.

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