Star’s path to success ‘now clear’

Embattled casino company Star Entertainment has avoided a second strike after a feisty AGM.

Star says its Queens Wharf development in Brisbane, due to be open in early 2024, would be a “tourism beacon” for the state. Picture: Supplied

Embattled casino company Star Entertainment has avoided a second strike after a feisty annual meeting where shareholders vented their frustration at the collapse of its share price in the face of a raft of actions by gaming regulators and anti-money laundering agency Austrac.

While shareholders raised concerns about the big “disruption of shareholder value” – shares have fallen to 57c, compared $6 in recent years and more than $2.50 a year ago – they voted overwhelmingly to support the remuneration report.

The initial showing of proxies had more than 83 per cent of shareholders voting in favour.

This allowed the board of the company, which has casinos and hotels in Sydney, Brisbane and the Gold Coast, to avoid a second strike following the first one last year.

Chairman David Foster and directors Toni Thornton and Deborah Page were comfortably re-elected.

Proposals for short and long term incentives for chief executive Robbie Cook were also strongly backed by shareholders.

A second strike could have paved the way for a spill of the board, but shareholders were reminded that the board had been renewed since the beginning of the last financial year.

Mr Foster joined the board in December and took over as chairman in March.

Mr Cook, who has been in the role for just over a year, told the meeting the job was by far the hardest he had had in a career that included being CEO of three ASX-listed companies before joining Star.

He told shareholders who complained about the fall in the share price and two recent rights issues that the company was suffering from the acts of the past.

“There have been significant operation restrictions put on the business to remedy the acts of the past when the share price was $6,” he said. “It was fuelled by unlawful behaviour and criminals on the property and junket operators.”

But Mr Cook said there was no quick fix for the problems.

“This is not as a result of anything the management team has done in the last 12 months,” he said. “I believe in the assets.

“We are here to try and clean up what has happened over the last five, seven to 10 years.”

Mr Foster tried to reassure shareholders that his company was dealing with a raft of regulatory issues.

He told shareholders that a “path to a successful and sustainable future is now clear”, including constructive engagement with the NSW and Queensland governments, transforming the casino company’s culture, and dealing with Austrac.

“We continue to deal with external matters, including Austrac, the remaining class action in the Victorian Supreme Court and a dispute between the Queens Wharf Brisbane joint venture vehicle and the builder, which has led to legal proceedings in the Queensland Supreme Court,” he said.

Mr Foster said the company was pleased to have reached an agreement with the NSW government to defer a proposed increase in poker machine duties until July 2030. “Resolving the casino gaming tax issue is important for not only removing uncertainty for our Sydney operation but for the protection of thousands of jobs in NSW,” he said.

He said the company’s Queens Wharf development in Brisbane, due to be opened in the first half of 2024, would be a “tourism beacon” for the state.

He acknowledged the past year had been a “challenging time” for the company.

Star reported a $2.4bn loss for the year to June after writing off more than $2bn from the value of its three casinos.

Its shares have collapsed during the year, down from a high of $1.64 in January to 57c, taking its market capitalisation to $1.64bn.

Mr Foster said it was the responsibility of the board and the current management to “take the company forward again”.

“What has gone on before cannot happen again,” he said.

The company faces a difficult AGM at its property on the Gold Coast, with the potential for a second strike against its remuneration report.

The company lost two chief executives last year – long-time CEO Matt Bekier in March 2022 and interim chief Geoff Hogg in September 2022 after the release of a critical report into its operations in NSW by Adam Bell SC which found it was unfit to hold a casino licence in the state.

Star Entertainment Group chief executive Robbie Cooke said it had improved its risk management and anti-money laundering capabilities.

Mr Cooke, who has been in the role for just over a year, told the AGM that the company had faced some “extraordinary issues” over the past year.

He said the company had improved its risk management and anti-money laundering capabilities, enhanced operating controls, and improved its financial crime management.