The Star Entertainment Group’s massive $2.4 billion blow

The Star Entertainment Group has recorded a huge full-year loss following a horror run, however its CEO says things are looking up.

The Star Entertainment Group has recorded a massive full-year loss of $2.44 billion.

The loss was driven by a writedown in the value of its casinos in Sydney, the Gold Coast and Brisbane, following a horror run for the company, chief executive Robbie Cooke said.

However, Mr Cooke said the worst – including two state inquiries and four shareholder class actions – was over.

In a statement released alongside the struggling casino giant’s full year results today, he said it would be a trivialisation to call the last 12 months tough.

“To say it has been a challenging year completely understates the lived experience at The Star over the last 12 months,” he said.

“The consequences flowing from the damage to our social licence are felt daily by team members on multiple levels, reinforcing the critical need to understand the privilege and responsibility that comes with holding a casino licence.

“The ancillary challenges that have arisen in the year, and there are many, all follow from the breaches of trust identified in the Bell and Gotterson reports.

The Star has revealed a $2.4bn loss. Picture: iStock

Mr Cooke said the company was focused on turning things around.

“As a team we are determined to earn back the trust and confidence of our community including our regulators, governments, shareholders, employees and guests. We fully understand the responsibility involved in holding our licences and are committed to transforming our leadership and culture.”

However, he acknowledged the journey had just begun and there was “still a lot to be done”.

He listed the top priority as remediation and working towards returning to suitability. The company would also continue to focus on safer gambling and a culture transformation.

Star Entertainment Group chief executive Robbie Cooke said the last 12 months had been ‘challenging’.

Mr Cooke said there was some good news for the brand.

“The resolution of the NSW casino duty proposed increase has removed significant uncertainty in relation to FY24 and beyond for our Sydney operation and has protected the jobs of thousands of NSW team members.”

Mr Cooke told Nine newspapers he expected 2024 would offer a marked improvement.

That’s based on the six weeks of trading since the last financial year ended on June 30.

“We won’t get back to pre-COVID-19 levels, but things are moving in the right direction, and I’m feeling more confident about the operational performance,” Mr Cooke said.

He had revealed that The Star was planning to resume serving complimentary alcoholic beverages to VIP members in its NSW casinos. It comes less than a year after they were banned.

A progress image showing The Star Brisbane and Queen's Wharf Brisbane precinct. Photo: The Star Entertainment Group.

He said it would not worsen gambling concerns.

“It’s not a case of the more gambling you do, the more drinks you get. It is a benefit given to members of these rooms,” he said.

Earlier this year, the company announced it would slash 500 jobs, along with cancel bonuses and freeze the salaries for some staff in a bid to save $100 million.

The business blamed a “significant and rapid deterioration” in operating conditions, particularly at its Sydney and Gold Coast casinos.

Originally published as The Star Entertainment Group’s massive $2.4 billion blow