Star CEO Highlights Progress, Asks Shareholders for Patience

Star Entertainment, the recognizable gaming operator in Australia, continues to face challenges and asked shareholders for patience until the business completes its transformation and starts to return value. Those were some of the takes of the company’s recent annual general meeting which took place on Thursday in Brisbane.

The Company Remains Dedicated to Transformation

Steve McCann, Star’s recently appointed group chief executive officer (CEO), who joined the company back in July, addressed a number of current issues the operator is facing. Notably, the executive pointed to the release of the Bell Two inquiry and the deteriorating relationship with the Australian regulatory bodies at the time of his arrival.

McCann also spoke about the continuously decreasing revenue the company exhibited recently. The newly appointed CEO added that at the time of his arrival, the Star was at risk of losing its license too. However, McCann pointed to the relentless efforts of Anne Ward, the company’s chairwoman, the Board and himself over the last few months in trying to “address these issues and establish a pathway to remediation and recovery.”

“However, revenue has continued to decline significantly while the costs of our transformation and the cost of the external advice and assistance we have required have continued to be at inflated levels,“

Steve McCann, group CEO at Star Entertainment

Despite the extensive efforts related to transformation, realigning and remediation, the business is ahead of difficult times, the executive predicted. On the bright side, according to McCann, the Star made good progress in enhancing transparency, improving its relationship with the regulators and implementing strategic changes to the company’s operating model and operations in particular.

A challenge in McCann’s words remains the decreasing revenue and the costs related to the company’s transformation. This is the direct result of the implementation of cashless and carded play at the Star’s Sydney casino as a part of the company’s dedication to ensuring compliance and addressing challenges raised by the government’s inquiries in its business.

The Executive Asked Shareholders to Be Patient

According to McCann, it is clear that to “rebuild shareholder value,” the company needs to address the ongoing challenges, complete its cultural transformation, remediate challenges and at the same time restore the trust in communities and regulators. “This will not be easy and will take time. What I can assure you is we will be working very hard with all of our stakeholders and our teams to achieve this,” the executive added.

As explained by Ward, decisive action was taken in the transformation of the business. The chairwoman pointed to the importance of the implementation of the decentralized operating model where each property is led by a local CEO. This, according to Ward, helps “ensure closer oversight and accountability for operations including our casino license obligations.”

Notably, McCann said that the business retains focused on remediation and addressing challenges. In conclusion, the executive asked shareholders for patience and support while the Star’s executive team and Board help turn the business around and transform it into what it “can and should be in the future.”