Echo Entertainment reports 59 percent rise in FY net profit

Echo Entertainment Group reported a 59 percent rise in full-year net profit after improved marketing and loyalty programs drove strong domestic revenue growth.

The Australian gaming firm’s net profit for the year to June 30 was A$169.3 million ($123.7 million). 

Normalised net profit, which removes significant items and the volatility of Echo’s international VIP rebate business, rose 52 percent to A$219 million.

Normalised EBITDA rose to $521 million, up 24.1 percent year-on-year driven by, among other factors, normalised gross revenue of $2.3 billion up 20.6 percent, domestic gaming revenues of $1.4 billion up 14.6 percent and normalised International VIP Rebate business gross revenue up 53.0 percent to $662 million with turnover of $46.2 billion.

“Revenue growth was driven by a combination of improved marketing, loyalty program and sales activity, improved product offering and stronger macro-economic conditions in each of the group’s markets,” the company said.

Chairman John O’Neill said the company has declared total dividends of 11 cents per share for the financial year, up 37.5 percent on the prior period.

Revenue performance at the operator’s The Star property was strong with normalised gross revenue of $1.6 billion up 25.7 percent YoY. Domestic gross gaming revenue was up 17.7 percent with strong growth across both tables and slots, up 20.1 percent and 13.0 percent respectively.

Echo, along with its partners in the Destination Brisbane Consortium, Chow Tai Fook Enterprises and Far East Consortium, on 20 July 2015 was selected as the preferred developer for the Queen’s Wharf Brisbane project.