Reef have now released the Chairman's and CEO's address to the AGM today, and an update for the current half. The CEO particularly noted the potential of direct flights from China. The tone of the update is quite optimistic. Many may be surprised to learn the Casino is trading well ahead of the equivalent period last year.
"In the first 4 months of this year, rentals paid by the Reef Hotel Casino to the Trust have recorded strong growth compared to the same period last year. Consequently, Trust distributable profits for the first 4 months came in at $3.48 million (compared to $2.41 million for the first 4 months last year) and have already exceeded the distributable profit for the first half of last year which was $3.25 million."
"While there is some reason to be optimistic, it is our view that 2011 will again present as a challenging year. There are some positive signs that Cairns’ and the Far North Queensland region are slowly recovering from the global financial crisis and that tourism is generally improving from a sluggish 2010."
Regardless of any negative perceptions around gambling and its role in the local entertainment community the casino continues to impress as a well managed and structured business, at least relative to some other fallen angels.