The Star will cut 350 jobs by March 2025, as part of the casino operators’ new “cost reduction initiatives”, after reporting almost a multi-billion dollar loss.
It comes after the Star Entertainment Group posted its 2023/24 financial results on Thursday — revealing a net loss of nearly $1.7 billion for the year.
The publicly listed company owns and operates The Star Sydney, The Star Gold Coast, and Treasury Brisbane casinos.
It was suspended from trading earlier this month when it missed an Australian Securities Exchange (ASX) deadline to file the results.
The Star
A 2022 inquiry into The Star – led by the NSW Independent Casino Commission – detailed evidence of money laundering, organised crime, and fraud.
It found The Star Sydney was unfit to hold a casino license. An independent manager was appointed to run it.
Earlier this month, a follow-up report found the Sydney casino was “currently falling short of what is required from a suitable casino operator”.
It coincided with a trading halt against The Star for failing to submit its financial report to the ASX.
Earnings
The Star’s 2023/24 financial report was submitted to the ASX this week.
It shows the group recorded $1.68 billion in annual revenue, down 10% from the previous year. Revenue is the total income a company earns from selling its products or services.
The Star reported a $1.69 billion loss, which it attributed to several factors.
This included: “A more challenging consumer environment, loss of market share and the impact of changed business practices,” for negatively impacting earnings.
Recovery Plan
The Star is planning to sell some of its key assets, including its Treasury Brisbane venue.
The group also said it “will continue to review the potential sale of other non-core assets and identify any additional cost savings.”
The Star flagged several “cost reduction initiatives” including 350 job cuts by March and a hiring freeze.
It will freeze the salaries of several employees (limiting pay rises), and cancel planned bonuses for some staffers.
The Star acknowledged the business faces several “significant challenges” from “an earnings, liquidity and balance sheet perspective.
CEO Steve McCann said “time and flexibility” would be required to implement “initiatives to improve business performance and cashflow.”
He said The Star was “focused on demonstrating suitability to hold our casino licenses and regaining the trust and support of our regulators and the broader community”.
