Star Gold Coast CEO Steps Down, Company Seeks Replacement
The Star Gold Coast has seen another executive depart, with Jessica Mellor stepping down as Chief Executive Officer.
Star Entertainment Group revealed that Mellor will officially depart on May 24th, with gaming head Ian Brown assuming the role of acting CEO while the company seeks a permanent replacement.
Mellor will continue to provide support to Star Entertainment Group until September, including aiding in the transition and other “crucial projects.”
Mellor assumed the role of CEO of The Star Gold Coast last October, becoming the youngest female CEO of the venue. Before this, she served as Chief Operating Officer at Star Entertainment Group for four and a half years.
Prior to joining Star Entertainment Group, Mellor held the position of CEO at Aquis Entertainment and worked on acquisitions at Aquis Australia. She also held positions at Custodian Fund Management Group, JLF Group, and Leighton Contractors.
“Jessica has guided The Star Gold Coast through some difficult periods, including the COVID-19 pandemic,” stated Star Entertainment Group Executive Chairman David Foster. “She has played a key role in our joint venture with our partners in transforming the Gold Coast property into a renowned world-class integrated resort destination.”
The decision has been made by Jessica to move on to new opportunities. The board and I express our gratitude for her dedication and hard work as the chief executive officer of Star Gold Coast.
Star has recently undergone a series of changes in its leadership, with several executives departing, including the CEO and CFO.
Meller’s exit is the most recent in a series of personnel changes at Star in recent weeks, with several other executives also leaving their positions.
In the middle of March, Robbie Cooke announced his decision to step down as group CEO and managing director. Christina Kashibupa will also be departing, resigning from her position as CFO.
Cooke assumed the role of CEO of Star in November 2022. Prior to this, he was the fourth CEO in a year for the operator, following Matt Bekier (who resigned during an investigation into Star in New South Wales), John O’Neill, and Jeff Hogg.
Last month, Star stated that the leadership changes were in the best interests of the company. Foster will take on the additional responsibility of executive chairman while the search for a permanent CEO is ongoing.
Kashibupa will be leaving the company to pursue other endeavors. Neil O’Connell, former CFO of Tatts Group, will be stepping in as an interim replacement.
Star’s third-quarter net loss
This month, Star also released a trading update for the third quarter. It included a 4.6% decrease in revenue to A$419.2 million (£216.1 million/€252.6 million)/$269 million.
Star stated that premium gaming room revenue at its properties was down compared to the previous year. This trend was reflected across the industry – premium gaming room revenue at Star Sydney was down 19.3%. The decline was 20.0% at Star Gold Coast and 28% at Treasury Brisbane.
In spite of this, the main gambling zones experienced positive financial gains. Sydney Star’s income rose by 5.4%, Gold Coast Star’s income climbed by 4.6%, and Brisbane Treasury’s income went up by 6.4%. Nevertheless, the earnings from high-stakes gambling areas led to a 4.6% decrease in total revenue for all three hotels.
Not all financial information was made public in the update. The released financial data included a net loss after taxes of A$6.8 million. Nonetheless, this is a positive indicator compared to the A$49.7 million loss in the third quarter of 2023.
Bell II inquiry initiated
The third quarter also brought news that the New South Wales Independent Gambling Commission would be conducting a second inquiry into the Star. This is a follow-up to the well-known Bell Report.
The inquiry, named Bell II, commenced on February 19 and will continue until May 31.
The initial Bell Report exposed a series of anti-money laundering and social responsibility shortcomings at Sydney Star. It suggested 30 steps to enhance practices. A year after the initial report was published, a report indicated that the Star had implemented 22 of the 30 recommendations.
The second inquiry will concentrate on the Star’s culture and the impact of the first Bell Report.
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