primes for casino battle with Crown - 13th August
Entertainment's earnings have beaten expectations,
and with more competition coming to the table the
casino operator is splashing more cash on high rollers.
owner of The Star in Sydney lifted its full year net
profit 27 per cent to $106.3 million, largely on strong
revenue growth in the second half of the financial
year and tight cost controls.
volatility associated with fluctuations in spending
by high rollers is removed, Echo's profit rose 25
per cent to $158.2 million, surpassing earlier forecasts
of between $150 million and $153 million.
executive Matt Bekier said Echo has started the 2014/15
year with the same strong momentum.
me, the second half is the new normal," he said.
not giving an earnings prediction but in terms of
the initiatives and the momentum, there's no reason
why that number should go backwards."
Star enjoyed a 6.8 per cent rise in gross revenues
to $1.3 billion in 2013/14.
from its high roller business grew by nearly seven
per cent to $472 million, and The Star's private gaming
rooms achieved stronger growth as Echo's loyalty program,
launched about 15 months ago, gained traction.
Bekier plans to grow the loyalty program ahead of
the proposed 2019 opening of a Sydney's second casino,
a high roller venue to be operated by James Packer's
Crown Resorts, at the Barangaroo development.
biggest individual expense would be the expansion
and the upgrade of our private facilities in advance
of Barangaroo opening," Mr Bekier said.
up our people, improving our customer service and
building equity into our loyalty system that we can
leverage is going to be the key for us to compete
at Echo's Queensland casinos, which include Jupiters
on the Gold Coast, fell 3.7 per cent to $620.1 million.
from domestic gaming in Queensland was flat, while
non-gaming revenue fell 5.3 per cent because of a
lack of new attractions for customers.
so, the Echo's performance ticked all the boxes, CMC
Markets chief market analyst Ric Spooner said.
outlook is good and they're ahead of their cost cutting
which has really encouraged investors," he said.
shares were up 12.5 cents, or 3.9 per cent, at $3.325
at 1450 AEST, while the wider market was lower.
JACKPOT FOR CASINO OWNER ECHO ENTERTAINMENT
year net profit of $106.3m, up 27 pct from $83.5m
of $1.81b, up four pct from $1.74b
dividend of four cents per share, up from two cents