The publication reported a net profit of $271.5 million in its trading summary for the third period concluding on March 31. This represents a minor decrease of 4.6% in comparison to the third period of 2023.
The publication has not yet unveiled its complete third-quarter outcomes, but has provided some specifics regarding key aspects of its operations.
The publication’s third period was chaotic. In February, the New South Wales Independent Liquor & Gaming Authority confirmed it would conduct a second round of investigations into The Star, a follow-up to the notorious Bell Report. Known as “Bell Two,” the investigation commenced on February 19 and will continue until May 31.
The publication requested its ordinary shares be halted from trading on the Australian Securities Exchange on the day it announced the second round of investigations.
The initial Bell Report revealed substantial shortcomings in anti-money laundering and social responsibility at The Star Sydney and suggested 30 measures to enhance practices. A year after the initial report was released, a report indicated that The Star had implemented 22 of the 30 recommendations.
The second round of investigations will concentrate on The Star’s culture, as well as examining the impact of the first Bell Report.
What is included in the trading summary?
The Star Entertainment Group disclosed that earnings from their high-roller areas experienced a decrease compared to the previous year’s third quarter. This was a substantial decline – at The Star Sydney, high-roller room revenue plummeted by nearly 20%. The Star Gold Coast witnessed a comparable drop, while Treasury Brisbane’s reduction was even more pronounced.
However, the standard gaming areas performed well. The Star Sydney observed a slight increase in income, while The Star Gold Coast and Treasury Brisbane also saw gains. Nevertheless, the total revenue for all three gambling establishments was still lower due to the significant dip in high-roller room revenue.
Gaming taxes also experienced a slight decrease compared to the previous year. The highest tax revenue occurred in January, which also had the highest overall revenue.
March had the highest operational costs, which were slightly higher compared to the previous year. The organization stated that this was due to increased spending on their risk and control teams.
The company’s profit was significantly lower compared to the previous year. However, their earnings before interest and taxes (EBIT) were considerably better than the previous year.
Overall, the company incurred a net loss, but it was significantly smaller than the loss they experienced in the previous year.
Difficult times lie ahead.
The quest for a new chief executive officer persists following the departures of Robbie Cooke, Star’s CEO, and Christina Katsibouba, the chief financial officer, in March, a month after the introduction of the Bell 2. David Foster, the presiding officer, has been designated as the temporary executive chairperson.
Star has encountered difficulties in filling the CEO role. Cooke was the company’s fourth CEO within a year when he assumed the position in November 2022. He succeeded Matt Bekier, John O’Neill, and Geoff Hogg.
Bekier stepped down in June 2021 amid an inquiry into the Sydney Star hotel.
Star has also confronted a series of ongoing regulatory hurdles in recent years. In October 2022, it was deemed “unfit” to hold a license in Queensland. Subsequently, Star’s license in the state was temporarily revoked and it was instructed to pay a penalty of A$100 million. Star’s New South Wales license was also temporarily suspended in October 2022. Furthermore, it was ordered to pay a fine of A$100 million.
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