Star Entertainment Group has revealed the exit of another leader, with Jessica Mellor stepping down from her position as Chief Executive Officer of Star Gold Coast.
Mellor’s last day will be May 24th. Star Entertainment Group will be looking for a permanent successor, while Ian Brown, the General Manager of Gaming at Star Gold Coast, will assume the role of Acting CEO.
As part of her departure agreement, Mellor will continue to provide assistance to Star Entertainment Group until September. The company stated that this will include aiding with the transition and other “crucial projects.”
Mellor has been at the helm of Star Gold Coast since last October. She became the venue’s youngest and first female CEO when she took on the position. Before this role, she spent four and a half years at Star Entertainment Group as Chief Operating Officer.
Prior to joining Star Entertainment Group, Mellor served as CEO of Aquis Entertainment and held acquisition positions at Aquis Australia. She also worked at Custodian Funds Management Group, JLF Group Companies, and Leighton Contractors.
“Jessica has guided Star Gold Coast through difficult times, including the global health crisis,” said Star Entertainment Group Executive Chairman David Foster. “She has played a vital role in transforming the Gold Coast property into the renowned world-class integrated resort destination it is today, in collaboration with our joint venture partners.”
Jessica has made the decision to move forward. The board and I wish to express our gratitude for her dedication and effort as the chief executive officer of Star Gold Coast.
Star has experienced the departure of both its chief executive officer and chief financial officer.
Meller’s exit is the most recent in a series of executive departures at Star in recent weeks.
In March, Robbie Cooke announced his intention to step down from his role as group chief executive officer and managing director. Christina Kubasubba will also be departing, no longer serving as chief financial officer.
Cooke assumed the position of Star CEO in November 2022. Prior to that, he was the fourth chief executive officer in a year for the company, following Matt Bekier (who resigned during the Star NSW inquiry), John O’Neill, and Jeff Hogg.
Last month, Star indicated that the leadership changes were beneficial for the company. Foster will assume the role of executive chairman and take on expanded responsibilities while the search for a new chief executive officer is underway.
Kubasubba is leaving to pursue other endeavors. Neil O’Connell, who previously held the position of chief financial officer at Tatts Group, will assume her responsibilities until a permanent replacement is found.
Star’s third-quarter net loss
This month, Star also released its third-quarter financial report. It revealed a 4.6% decrease in revenue to A$419.2 million (£216.1 million/€252.6 million)/$269.0 million.
Star stated that revenue from high-end gaming rooms at its properties experienced a decline compared to the previous year. This reduction was observed across all locations – high-end gaming room revenue at Star Sydney decreased by 19.3%. The drop at Star Gold Coast was 20.0%, while Treasury Brisbane witnessed a 28% decline.
In spite of this, the primary gaming zones witnessed a rise in income. Sydney Star’s earnings climbed by 5.4%, Gold Coast Star’s earnings climbed by 4.6%, and Brisbane Treasury’s earnings climbed by 6.4%. Nonetheless, the high-stakes gaming rooms’ earnings resulted in a 4.6% decrease in overall income across all three locations.
Not all financial data was made public in the update. The publicly released results included a net loss after taxes of A$6.8 million. However, this is a positive indicator compared to the A$49.7 million loss recorded in the third quarter of 2023.
Bell II Inquiry Initiated
The third quarter also saw news that the Independent Liquor & Gaming Authority of New South Wales would be conducting a second inquiry into the Star. This is a follow-up to the well-known Bell Report.
The inquiry, dubbed “Bell II,” commenced on February 19th and will continue until May 31st.
The initial Bell Report uncovered a series of anti-money laundering and social responsibility failures at the Sydney Star. It suggested 30 measures 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 effect of the first Bell Report.
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