Star Entertainment CEO steps down amid executive reset
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The news: CEO of Star Entertainment Robbie Cooke will depart the casino group as the company awaits news on the outcome of an inquiry into whether it should retain its licence.
The numbers: Last month the company reported first-half profits of $9.1 million compared to a massive $1.3 billion loss a year ago. However, revenue slipped 14.6% to $865.7 million. The group said the weaker result reflected lower revenue from premium gaming areas as well as operating restrictions that affected the performance of electronic gaming machines.
The context: The group confirmed Cooke's departure in a an ASX notice published on Friday night, stating that David Foster would take on additional duties as executive chair until a replacement has been finalised. The Star also confirmed that chief financial officer Christina Katsibouba has resigned, and will be replaced by Neale O’Connell as interim CFO.
The Star is currently facing a second inquiry into its suitability to operate casinos in NSW as well as other regulatory challenges in Queensland. It is also in the midst of refinancing project debt for its Queens Wharf development in Brisbane.
What they said: On his departure, Cooke stated: “Whilst I find the position exceptionally disappointing, I have reached the conclusion that my continuation in the Group CEO role is not going to be conducive to the NICC determining to find The Star capable of becoming suitable to hold a casino licence in NSW. In these circumstances a change in leadership provides the best opportunity for the business to navigate the regulatory pressure it is facing.”
The sources: ASX CEO announcement, ASX CFO announcement, Capital Brief
