The Star Entertainment Group has declared the departure of its Chief Financial Officer, Christine Catsimatidis.
Robbie Cooke has declared his resignation as Chief Executive Officer and Managing Director of Star Entertainment Group in Australia, and Christine Catsimatidis has also declared her resignation as Chief Financial Officer.
Star Entertainment Group loses key administrators, CEO and CFO step down
Cooke and the board believe that the leadership shift is in the best interests of the organization. Star Entertainment Group explained. Chairman David Foster will serve as Executive Chairman and take on more responsibilities while a permanent CEO search is in progress.
Cooke took over as CEO of Star Entertainment Group in November 2022. Before that, he was the operator’s fourth CEO in a year, following Matt Bekier (who stepped down during the New South Wales inquiry into Star Entertainment Group), John O’Neill and Geoff Hogg.
Before joining Star Entertainment Group, Cooke was CEO of Tyro Payments. However, he is better known for his time as Managing Director and Group CEO of lottery business Tatts Group from 2013 to 2018. He left shortly after Tatts Group was acquired by Tabcorp.
Cooke stepped down from his top position at Star Entertainment Group immediately. However, he will continue to advise the operator for the next six months.
Cooke’s departure arrives during the New South Wales inquiry
The news arrives as Star Entertainment Group faces a second inquiry by the New South Wales Independent Casino Commission (NICC).
As declared last month, Adam Bell, who spearheaded the initial Bell Report, will spearhead the inquiry into how Star Entertainment implemented the recommendations of the original report.
Star Entertainment was deemed inappropriate to hold a gambling license in New South Wales in September 2022 after an initial inquiry uncovered a series of anti-money laundering and social responsibility failings.
Cook stated it would be “harmful” to continue as CEO while the process was in progress. The 15-week inquiry is anticipated to release its final report on May 31.
“While I find this situation extremely disheartening, I have concluded that my continued role as Group CEO is detrimental to the NICC’s decision regarding whether Star Entertainment is suitable to hold a gambling license in NSW,” Cook stated.
“In these circumstances, a shift in leadership provides the best chance for the company to address the regulatory pressures it faces. I am reassured by the accomplishments we have achieved as a team over the past 16 months.
“I am confident that the company is now on the correct path. David and the upcoming CEO will have my ongoing support to complete the key business and important strategic initiatives in progress.”
Star Entertainment’s chairman commended Cook’s “relentless” efforts and appointed Anne Ward as chief independent director to replace Foster in the new executive position. Foster praised Cook’s influence on the business in recent years.
Upon joining in the fall of 2022, Robbie has been concentrating on solidifying operations, tackling a number of critical threats to the company, responding to individual corrective actions from regulatory bodies, and reconstructing the leadership team and systems,” Foster stated.
“This includes bringing in more senior risk, compliance and financial crime leaders, as well as initiating our cultural transformation. Robbie has expressed a dedication to placing safe, responsible and ethical gaming at the core of all our endeavors.”
Foster also addressed the second inquiry in New South Wales, stating he believes the operator will regain the confidence of players.
“We remain completely committed to being deemed suitable to hold casino licenses in New South Wales and Queensland,” Foster said. “In assuming the executive position, I am resolute in continuing the positive progress at The Star Group, as we strive to restore the trust of our investors.
“The company’s numerous employees deserve stability and security as they continue to collaborate to put the business back on the right path.”
Chief Financial Officer Cassie Bubba is also scheduled to leave
Furthermore, The Star Group today confirmed that Christina Cassie Bubba will be leaving her position as Chief Financial Officer. Former Tatts Group CFO Neil O’Connell will assume the role until further notice.
Christina Cassibba, who has served as the Chief Financial Officer of Star since May 2022, initially in a temporary position and later permanently, is departing the organization after a nine-year tenure with the operator.
Cassibba joined Star in April 2015 as General Manager of Financial Transformation and has since held a number of high-level finance positions. These include Group Finance Director and Deputy Chief Financial Officer. She also served as Gaming Group Executive before assuming the role of CFO nearly two years ago.
Before joining Star, Cassibba spent nearly five years at Australian market enterprise Salmat, also in finance roles. She has also worked at Apparal Group and PwC.
Star stated that Cassibba is leaving the company to pursue other opportunities.
“Christina took on the CFO role following the Bell Inquiry in 2022,” said Foster. “After two demanding years, she has decided that now is the appropriate time to move on.
“She has the gratitude of the Board and me personally for her tireless efforts as CFO and Gaming Group Executive. We wish her the best in her future endeavors.”
O’Connell to serve as temporary CFO
Cassibba’s replacement is O’Connell, who brings extensive experience in the gaming and leisure industries.
O’Connell most recently served as Global CFO of Corporate Travel Management from July 2019 to June 2021. Prior to that, he spent nearly 14 years at Tatts Group, initially as Group General Manager Finance, later advancing to CFO.
Neil Hopkins previously held the position of Chief Financial Officer (CFO) at Delta Group in Australia and served as the Group CFO at Smorgon Steel Group. He currently holds a seat on the board of the Australian Institute of Company Directors and provides strategic guidance to Songtradr.
Foster stated: “Neil is a seasoned and highly skilled successor. He possesses extensive industry and publicly listed company experience, which will bring fresh perspectives and leadership to our management team.
“Star Entertainment operates within a highly regulated environment and is undergoing significant internal transformations. Neil’s expertise will be invaluable.”
Star Entertainment Returns to Profitability in Mid-Year Results
The news follows Star Entertainment’s recent announcement last month that they had returned to profitability in the initial six months of fiscal 2024. Despite a decrease in overall revenue, Star Entertainment still managed to achieve a positive financial outcome.
Revenue for the initial six-month period decreased by 14.6% to A$865.7 million (£447.2 million/€521.3 million/$564.6 million). However, Star Entertainment shifted to a net profit of A$9.1 million, in contrast to a loss of A$1.26 billion during the same period the previous year.
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