The top executives at Star Entertainment are still departing, with the head of Star Gold Coast stepping down.
Star Entertainment Group has declared the exit of another high-ranking worker, Jessica Mellor, who has stepped down from her position as chief executive of Star Gold Coast.
Mellor will officially leave her post on May 24th. Ian Brown, the gaming head of Star Gold Coast, will take over as temporary chief executive while Star Entertainment Group searches for a permanent replacement.
Under her departure agreement, Mellor will continue to assist Star Entertainment Group until September. The operator stated this will include aiding with the transition and other “crucial projects.”
Mellor has been at the helm of Star Gold Coast since last October. When she took the position, she became the youngest female leader of the venue. Prior to this role, she spent four and a half years at Star Entertainment Group as chief operating officer.
Before joining Star Entertainment Group, Mellor served as chief executive of Aquis Entertainment and held an acquisition position at Aquis Australia. She also worked at Custodian Funds Management Group, JLF Group of Companies, and Leighton Contractors.
“Jessica has guided Star Gold Coast through some difficult times, including the COVID-19 pandemic,” said Star Entertainment Group executive chairman David Foster. “She has been a key figure in our joint venture partner’s development of the Gold Coast property into a renowned world-class integrated resort.”
Jessica feels it’s time for her to move on. She has the gratitude of the board and myself for her diligence during her tenure as CEO of Star.
Star has also lost its Chief Executive and Chief Financial Officer.
Meller’s exit is the most recent in a series of executive departures at Star in recent weeks, with several other senior managers leaving.
In the middle of March, Robbie Cook declared his resignation as Group CEO and Managing Director. Christina Cassibuba will also be departing, stepping down as CFO.
Cook took over as CEO of Star in November 2022. He became the fourth CEO of the operator in a year, succeeding Matt Bekier (who stepped down during the Star NSW investigation), John O’Neill, and Jeff Hogg.
Last month, Star stated the leadership changes were in the best interests of the company. Foster will assume the additional role of Executive Chairman while a permanent CEO is recruited.
Cassibuba will be leaving the company to pursue other opportunities. Neil O’Connell, former CFO of Tatts Group, will be taking on the role on a temporary basis.
Star’s third-quarter net loss
This month, Star also released its third-quarter operating update. This included a 4.6% decrease in revenue to A$419.2 million (£216.1 million/€252.6 million)/$269.0 million.
Star stated its property’s premium gaming room revenue declined year-on-year. This decline was observed across the board – premium gaming room revenue at The Star Sydney fell by 19.3%. The Star Gold Coast saw a 20.0% decline, while Treasury Brisbane saw a 28% drop.
In spite of this, key gaming zones experienced a rise in earnings. The Sydney Star Hotel observed a 5.4% surge in revenue, the Gold Coast Star Hotel saw a 4.6% increase, and the Brisbane Treasury Hotel witnessed a 6.4% growth. Nevertheless, income from high-end gambling spaces resulted in a 4.6% decline in overall revenue for all three establishments.
Complete financial details were not disclosed in the update. The published financial information revealed a net loss after taxes of A$6.8 million. However, this represents a positive development compared to the A$49.7 million loss recorded in the third quarter of 2023.
Bell II inquiry initiated
The third quarter also brought news that the New South Wales Independent Casino Commission would initiate a second investigation into Star. This serves as a follow-up to the notorious Bell Report.
The inquiry, known as Bell II, commenced on February 19 and will conclude on May 31.
The initial Bell Report uncovered a series of shortcomings in anti-money laundering and social responsibility at the Sydney Star. The report suggested 30 measures to enhance practices. A year after the initial report was released, a report indicated that Star had implemented 22 of the 30 recommendations.
The second investigation will concentrate on Star’s culture and the impact of the first Bell Report.
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