Star Entertainment Group, one of Australia’s largest casino operators, has confirmed the appointment of Frank Krile as group chief financial officer (CFO).

Krile will commence as CFO immediately, with current Interim Group CFO Neale O’Connell to continue in his role until 28 March 2025. O’Connell is to “assist in an orderly transition to Frank Krile over the coming months.”

This role marks Krile’s first in the gambling sector, having spent over 18 years with multinational construction and real estate group Lendlease. He has previously worked as group chief risk officer, and prior to that he has held roles as acting group chief financial officer and group deputy chief financial officer.

The Star has also confirmed the immediate departure of Mark Mackay from his role as the CEO of The Star Gold Coast. Mackay was appointed in September as part of the casino’s new-look leadership team, having previously served as the venue’s chief operating officer.

“We thank Mark Mackay for his assistance and wish him well for the future,” said Steve McCann, CEO and managing director of The Star Group. The Star Gold Coast’s search for a new CEO is ongoing.

Q1 FY25 financial results

Last month, Star Entertainment came under scrutiny following its Q1 FY25 financial results. It reported an 18 percent year-on-year decline in revenue, totalling AU$351 million, along with a first-quarter EBITDA loss of AU$18 million.

This result is a sharp contrast with the AU$62 million EBITDA reported in the same period last year, underscoring financial strain amidst regulatory pressures.

According to statements from Star, the company attributes its performance to a challenging operating environment and increasing regulatory and market pressures.

Analysts from Jefferies Group LLC also expressed concerns about Star’s long-term outlook, noting the significant regulatory burdens and limited prospects for a near-term recovery.

Star’s Sydney casino operations also remained under scrutiny by the New South Wales Independent Casino Commission (NICC), which imposed an AU$15 million fine because of ongoing compliance issues.

A spokesperson for the company confirmed that Star is closely cooperating with regulators to tackle governance issues and adhere to mandatory regulations.

Regulatory changes, including mandatory carded play and cash transaction limits, are also affecting Star’s revenue as the company adapts to meet NICC compliance requirements.

Steps taken by Star

To mitigate these challenges, Star has taken steps to bolster its liquidity. The company secured a new AU$200 million debt facility, which it described as essential for maintaining operations and meeting immediate financial needs.

Additionally, Star has sped up the sale of non-core assets to raise cash. Recently, the company sold the Sheraton Grand Mirage Resort Gold Coast for AU$192 million.

Under new CEO Steve McCann, Star has also introduced a cost-saving plan targeting AU$100 million in annual reductions to restore financial stability. McCann has emphasised the company’s commitment to regulatory compliance and highlighted its focus on building trust with regulators and stakeholders. 

Source