HomeNewsAustraliaReef Casino Trust reports 28 percent drop in net profits for 1H23

Reef Casino Trust reports 28 percent drop in net profits for 1H23


Reef Casino Trust, operator of the Reef Hotel Casino in Cairns, Australia, has reported a drop in revenue and distributable profit in the first half of this year.

The operator registered a 28 percent year-on-year fall in net profit distributable to shareholders to A$3.2 million ($2 million) in the first six months of this year, as revenue dropped 7 percent to A$12.5 million ($8 million). Most of the company’s revenue originated mainly from rental income from the Reef Hotel Casino.

At the same time, expenses expanded by A$1 million ($644,288) to A$7 million ($4.5 million) for the period, with expenses mainly comprised of payroll, electricity, maintenance, depreciation, and insurance.

Without revealing details the Trust stated that casino revenues in the first half of the year increased by 2 per cent, thanks to a 27 per cent increase in table games revenue.

‘Main floor table gaming and especially premium play reported good growth compared to last year. table gaming was supported by local and interstate visitors,’ the company’s financial report informed.

The company ended the period with EBITDA contracting to some A$7.2 million ($4.6 million), but the Trust Chairman, Philip Basha, underlined that the company’s cash balance remained strong, with a term loan facility with the Bank of Queensland remaining unaltered at A$13.5 million ($8.6 million) and expiring on January 31, 2025.

“Due to inflation, higher interest rates and global economic uncertainties, economic and trading conditions in Cairns and the region could be somewhat challenging amidst a degree of uncertainty. Increased oversight of regulatory matters requires close management monitoring and effort,” Basha pointed out.

Still, the company’s chairman noted that the cruise business in Cairns has recovered, business events and conferences are showing strong forward bookings, while the international market in Australia continues to recover.

This month Reef Casino Trust appointed a new CEO, Bradley Sheahon, effective from August 1, with the company undergoing a series of changes in top management recently.

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