The Star says group revenue for Q4 is set to drop 3.3 per cent year-on-year to a maximum of AU$1.69bn, as it announced Neale O’Connell as the group’s new acting CEO.
The Australian casino operator said group revenues are forecast to drop 4.3 per cent from Q3, with revenue from Premium Gaming Rooms set to drop 16.5 per cent.
While Main Gaming Floor revenues are expected to rise 5.2 per cent, this increase has “not been sufficient to offset the overall decline,” The Star said.
The Star confirmed it is looking to sell its Festival Car Park in Brisbane as part of a range of moves to “further reduce the operating cost base” of the group.
The Star has faced a troublesome few years across its land-based estate, including inquiries into alleged failings in New South Wales and Queensland.
The Bell inquiry in NSW saw now former executive chairman David Foster amid regret over “heat-of-the-moment” comments he made about the company’s special manager Nicholas Weeks and the NSW Independent Casino Commission, who were appointed after The Star was stripped of its casino licence in the state.
The Star has now confirmed that Foster has ceased all executive responsibilities and resigned from the board of directors.
Interim chief financial officer O’Connell has been appointed acting CEO and will continue his CFO duties. The Star expects to make an announcement on a new CEO and managing director “in the near term.”
Chairman Anne Ward has also assumed additional responsibilities since her appointment on April 29.
Elsewhere, The Star said it expects normalised FY24 EBITDA to be between AU$1.68bn and $1.69bn.
“These conditions, coupled with elevated operating expenses as a result of ongoing remediation and transformation activities, as well as increased resourcing in risk and control functions, have resulted in the group expecting its FY24 normalised group EBITDA to be in the range of $165m to $180m,” the company said.
It said revenue for The Star Sydney’s Premium Gaming Revenue is set to decrease by 13.2 per cent, with Main Gaming Floor revenue set to be up 6.3 per cent.
