Cairns-headquartered Reef Casino Trust reported net profit of $3.3 million up 7 percent on a year-on-year basis for the half year ended on Jun 2022 on solid domestic numbers.

The company had reported $3 million profit, during the same half of 2021.

Aided by a reasonable spike in the net revenues on YoY basis 2 percent up at $12.6 million from $12.3 million, the company’s earnings per share also improved by 7 percent on a YoY basis at 13.17 cents from 12.28 cents.

The revenue stream comprised of components including revenues from casino segment which contributed 88 percent to the revenue pie, followed by 11 percent contribution from hotels, non-casino and other segments.

Casino segment revenues shot-up 4 percent at $11.1 million from $10.7 million, whereas hotels, non-casino and other segment revenues declined 6 percent at $1.4 million from $1.5 million.

Attributing the good results mainly to the domestic activities, the filing documents read that, “The complex stayed open throughout. The COVID Omicron variant had a slight dampening impact on operations at the Reef Hotel Casino. Local and domestic patronage was strong especially from mid-March 2022 onwards. Even though international borders had opened, there were few international patrons.”

The Queensland Government had mandated indoor wearing of masks and fully vaccinated requirements for entry into the complex in mid-December 2021.

These requirements had ceased by April 2022.

On the financial front, The Trust’s interest-only business term loan facility with the Bank of Queensland remains unchanged at $13.500 million and expires on 31 January 2025.

The amount undrawn at 30 June 2022 was $13.300 million.

Importantly, the Trust continues to be solvent and a going concern.

At present, the Trust has determined there is no need for additional cash facilities or liquidity given the Trust’s current balance sheet position and outlook.  

Despite strong cash flows in the period, capital expenditure in the first six months of 2022 was very carefully managed keeping in mind that the COVID-19 pandemic is not yet over.

Capital items approved included new gaming machines, hotel operating asset requirements, and the proper maintenance and overall upkeep of the Reef Hotel Casino complex building, the filing read.