Thursday, August 22, 2013

Reef Casino (just?) misses guidance

Reef Casino has reported a 29% rise in first half profit as reported in the Cairns Post: Reef Casino records 30 per cent jump in profits.

 The trust has reported a distributable profit of $5m for the first six months of 2013, up $1.1m on $3.9m in 2012, a 29 per cent rise.

I don't want to be pedantic on minor selective rounding and the reported result was actually a 29% increase to $4.978 million.

As recently posted here at FNQ lifts Mantra Group the guidance from Reef on June 19 was that "Our current estimate of the distributable profit* for the first half year from 1 January 2013 to 30 June 2013 is between $5.0 million and $5.4 million."

So Reef seem to have actually just slightly missed or at least be at the very bottom of their June guidance. Also as previously posted the upper level of the Casino was closed for renovations in the previous corresponding period so relevance of direct comparison is difficult.

There was nothing exceptional in the commentary to note on either performance or strategy and nothing at all on the Aquis Casino proposal. casino commentary included:

Casino visitations: The casino recorded a 12.0% increase in visitations compared to the same period last year. Both our “locals strategy” and “China strategy” contributed successfully to this growth.
Table games: Total revenues were up 15.1% compared to the same period last year with good patron support from local, domestic and especially international tourist (mainly China) markets. Premium play recorded a win rate close to “theoretical”.
Electronic gaming machine turnover was up 4.3% with revenues up 1.7% compared to the same
period last year. Patron support from local and domestic markets remained solid. The “hold” or
“win” rate was however slightly lower than last year reflecting short term variability particularly
in the timing of jackpots.

Reef  Casino Trust had a difficult history in the earlier phase before rebounding from a corporate restructure. RCT recovered from the GFC hit in 2012 but that seems to have stalled in recent months.

 RCT 10 Year

Update: Echo Entertainment also released results today which included commentary on approval for the rival Packer high roller venue at Barangaroo in Sydney. Results for their Queensland Jupiters Casino operations have been reported as weak.

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