(Reuters) -Australian embattled casino group Star Entertainment on Friday narrowed its first-quarter loss sequentially due to stabilised trading in Sydney and seasonally stronger volumes on the Gold Coast. 

The company reported a loss before interest, taxes, depreciation and amortization for the three months ended September 30 of A$13 million ($8.45 million), compared with a loss of A$27 million for the previous quarter. 

However, Star flagged persistent challenging operating conditions due to the mandatory carded play and cash limits in New South Wales and stricter regulatory requirements across all properties. 

Shares of the casino operator rose 1.1% in early trade to A$0.089. 

($1 = 1.5389 Australian dollars)