The Star’s Still Too Big to Fail
The Star Entertainment Group’s ongoing challenges highlight a troubling pattern. Despite facing significant regulatory scrutiny over the past three years, the company continues to struggle with compliance. A recent report by Adam Bell, SC, criticized former chairman David Foster and ex-CEO Robbie Cooke for fostering a confrontational approach towards the NSW Independent Casino Commission. This behavior undermined efforts to restore the company’s license and reputation, following earlier findings that deemed The Star unfit to operate. The group’s redemption now hinges on effective leadership to navigate these regulatory hurdles.

Ramsay Health Disappoints Investors
Ramsay Health Care, Australia’s largest private hospital operator, warned that its financial recovery will be slow due to rising costs, particularly wage inflation. CEO Craig McNally emphasized that unless insurers agree to new funding arrangements, the company’s margins will remain under pressure. The private healthcare sector is currently under review by Health Minister Mark Butler, adding further uncertainty. Ramsay’s full-year earnings met forecasts but fell short of investor expectations, signaling that cost inflation, especially in wages, is a significant risk to the business’s profitability and future performance.

TPG Telecom Slashes Jobs Amid Profit Decline
TPG Telecom is set to cut 120 jobs in a bid to save $20 million after its interim net profit dropped 40% to $29 million, primarily due to sustained inflationary pressures. While revenue remained stable at around $2.7 billion, the company faced rising finance costs linked to new lease agreements and higher interest rates. Despite a modest increase in EBITDA, TPG is grappling with increased competition in the broadband market, which led to a decline in internet subscribers. The company plans to pay a 9¢ per share interim dividend, reflecting its cautious approach in a challenging market environment.