• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 1 June 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
No Result
View All Result

Star CEO says negative cashflow to remain the norm in short-term

Ben Blaschke by Ben Blaschke
Fri 29 Nov 2024 at 06:38
The 2024 Asian Gaming Power 50

It’s been a rough year for Australia’s Star Entertainment Group

47
SHARES
1.2k
VIEWS
Print Friendly, PDF & Email

Star Entertainment Group recorded a group-wide EBITDA loss of AU$8.5 million in October, taking its total EBITDA loss for the first four months of the financial year to AU$27 million amid warnings from the company’s CEO that negative cashflow is now a monthly occurrence.

Steve McCann, the former Crown Resorts boss who was appointed in June to save Star from financial collapse and drive its return to suitability, told shareholders during Thursday’s Annual General Meeting that it would take time to return to suitability given subdued business volumes and significantly higher compliance costs.

“The business will continue to face a number of challenges over the next few years as we continue this transformation,” he said. “We are at a critical point in our liquidity, with the business currently experiencing material negative cashflow on a monthly basis.

“We need time to deliver the reset remediation plan and to develop our strategy before we can return the business to profitability – and for that we’re asking for your ongoing support and for that of our lenders and other stakeholders.”

McCann noted that the cost of Star’s transformation process and the cost of sourcing external advice and assistance remain at “inflated levels”, while a “challenging consumer environment and changes in business practices continue to weigh heavily on gaming, particularly in the premium player segment.”

These new practices include the implementation of mandatory carded play at The Star Sydney on 19 August 2024, which has seen daily average revenue fall 15.5% when compared to the four weeks prior to implementation.

“It is very clear that to gain continued access to funding and to be able to rebuild shareholder value we need to turn around the trading performance of this business at the same time as progressing our cultural transformation and remediation and restoring the trust and confidence of our regulators and communities,” McCann continued. “This will not be easy and will take time.”

As reported by IAG, Star has reached an agreement with lenders for an AU$100 million debt facility, while a second AU$100 million tranche will become available provided the company raises another AU$150 million in subordinated capital, gain regulatory consents and obtain approval from lenders for the company’s strategic plan.

This plan, McCann said, includes a significant change to Star’s organizational structure from a group-led centralized operating model to a property-led model.

“Under this model, the key strategic, financial, risk and operational decisions will be owned by the properties, reporting into the three property CEOs, who will lead the restructure. Each CEO will have their own senior leadership team across key functions reporting into them directly, focussing on what they need to run a safe, compliant and profitable business. Each property will also be overseen by an independent State-based Board with its own governance structure and processes.

“It’s empowering our Property CEOs with greater control and accountability over their operations and the team supporting them. The importance of driving additional revenue from non-gaming entertainment, food and beverage and accommodation will be a key part of these strategies.

“The new operating model responds to regulatory feedback and the expectation for closer and more direct supervision of our operations at the property level and it allows us to remove overlap and realise critical cost savings.”

Star recently reported an 18% year-on-year decline in revenue to AU$351 million (US$230 million) and an AU$18 million EBITDA loss in 3Q24.

RelatedPosts

Ainsworth flags 1H25 revenue growth on Australian market strength but Novomatic takeover facing opposition by family of founder

Ainsworth chair says higher R&D investment necessary to boost global market competitiveness

Thu 29 May 2025 at 05:49
A moral defense of gambling

A moral defense of gambling

Wed 28 May 2025 at 18:19
Australia’s Star Entertainment Group says available cash halved in December 2024 quarter as liquidity crunch bites again

Bally’s wants broad review of Star’s operations if AU$300 million investment proposal approved by shareholders

Tue 27 May 2025 at 06:09
Crown Perth confirms two key appointments as new Chairman and new CEO named

Crown Perth confirms two key appointments as new Chairman and new CEO named

Mon 26 May 2025 at 18:06
Load More
Tags: AustraliaCash flowStar Entertainment GroupSteve McCannTransformation
Share19Share3
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

10 Years Ago – Reimagining Sri Lanka

Sri Lanka gazettes draft bill to establish Gambling Regulatory Authority

by Newsdesk
Sat 31 May 2025 at 06:03

A draft bill that would establish an official regulator for the Sri Lankan gaming industry, to be known as the Gambling Regulatory Authority, has taken another step forward after being gazetted. According to the Sri Lanka Mirror, the official announcement...

RGB International signs agreement to distribute KL Saberi and Atlas gaming machines

After record-breaking sales in 2024, Malaysia’s RGB sees 1Q25 profit fall to

by Newsdesk
Sat 31 May 2025 at 05:53

Malaysian gaming product distributor RGB International Bhd has reported group-wide revenue of MYR73.6 million (US$17.3 million) for the three months to 31 March 2025, down 65% year-on-year due to a lower number of products sold. The figure was also 79%...

Robert Goldstein to step aside as LVS Chairman and CEO from March 2026, replaced by Patrick Dumont

Robert Goldstein: Macau gaming market challenged by increased competition, online gambling and US-Sino trade war

by Ben Blaschke
Fri 30 May 2025 at 06:42

Las Vegas Sands (LVS) Chairman and CEO Robert Goldstein has bemoaned the lingering impact of the US-China trade war, as well as increased domestic and regional competition and the rise of online gambling across Asia for sustained flatness in the...

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

by Ben Blaschke
Fri 30 May 2025 at 05:38

Industry figures taking part in the Thai Entertainment Complex Roundtable (TECR) next Thursday 5 June hope to find common ground with those who oppose Thailand’s Entertainment Complex Bill, citing the opportunity to use an evidence-based approach to achieve outcomes that...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English