Star Entertainment Group has appointed Steve McCann, the former head of Crown Resorts, as its new group chief executive and managing director, effective July 8, pending regulatory approval.
McCann succeeds Robbie Cooke, who stepped down from the position in March but stayed on in a consultancy role while the company searched for a replacement. Neale O’Connell, interim group chief financial officer, has been serving as acting CEO, with newly appointed chair Anne Ward taking on additional interim responsibilities.
McCann brings extensive experience to the role, having held several high-level positions over his 28-year career. He served as CEO and managing director of Crown Resorts from May 2021 to September 2022.
Before joining Crown, McCann spent over 15 years at real estate development and investment group Lendlease, including more than a decade as group CEO. He also held senior leadership roles at ABN AMRO and Bankers Trust earlier in his career.
Upon his appointment, McCann acknowledged the challenging period Star is navigating and expressed his commitment to restoring confidence in the company.
“I recognize that there are many complex issues and challenges for the company to address,” McCann said. “I am committed to working with the board and the various stakeholders to help drive change, restore confidence, and achieve a sustainable resolution.”
Chair Anne Ward welcomed McCann’s appointment, highlighting his extensive experience and leadership capabilities.
“Given his time with Crown and previous long-standing leadership at Lendlease, he has the right credentials to lead Star’s remediation programme,” Ward said. “His track record reflects his capability to work collaboratively with multiple stakeholders and lead meaningful transformational change and cultural renewal.”
Star Entertainment has faced numerous regulatory challenges in recent years. Both McCann and Ward acknowledged the significant efforts required to rebuild trust and restore customer confidence.
The New South Wales Independent Casino Commission (NICC) recently launched a second inquiry into Star, led by Adam Bell SC, who also oversaw the first Bell report.
The initial investigation declared Star unsuitable to hold a casino license in New South Wales in September 2022 due to anti-money laundering and social responsibility failings. The findings of the second inquiry, launched in February, have yet to be published.
In Queensland, authorities announced a further delay to a planned license suspension for Star on May. The group was sanctioned in December 2022 over a series of failings, fined $100 million, and given until December 2023 to prove its suitability to hold a license. The deadline was extended to May 2024 after Star submitted a draft remediation plan, with authorities awaiting the results of the second Bell Inquiry before making a final decision.
Star Entertainment recently announced it is on track to report a decline in full-year revenue due to a “challenging” 12 months. For the year ending June 30, the company forecasts revenue between AU$1.68 billion ($1.11 billion) and AU$1.69 billion, down from AU$1.90 billion in FY23.
The company cited “challenging” trading conditions throughout the year, higher operating costs related to remediation and transformation activities, and increased resourcing in risk and control functions. Consequently, Star expects a decline in adjusted EBITDA to between AU$165 million and AU$180 million, with the upper end 43.2% lower year-on-year.
Looking ahead, Star is considering asset sales, including the Treasury casino, hotel, and car park, with negotiations underway. The company may also sell other non-core assets, with further updates expected when it reports its FY24 results later this year.
Original article: https://www.yogonet.com/international/noticias/2024/07/02/72907-star-entertainment-appoints-former-crown-resorts-chief-as-new-ceo-amid-regulatory-challenges
