The company posted a distributable profit in line with pre-pandemic results.
Australia.- Reef Casino Trust has shared its financial results for the year 2024. The company posted a distributable profit of AU$10.1m (US$6.4m).
Revenue and other income reached AU$25.5m (US$16.1m), primarily derived from rental income from the Reef Hotel Casino. That’s a decrease of 3.1 per cent in year-on-year terms. Total revenue at the Reef Hotel Casino complex was above the prior year but costs, primarily payroll and regulatory-related costs, were higher.
Visitation to the Reef Hotel Casino increased by 1.5 per cent, primarily due to local and domestic visitors with proportionally fewer international guests. Electronic gaming revenue rose by 3.2 per cent. Meanwhile, table gaming revenue decreased by 8.3 per cent due to a lower win rate and fewer premium players.
Hotel revenue was up 3.9 per cent year-on-year and food & beverage revenue increased by 5.5 per cent. According to the company, ongoing promotions, functions and live entertainment resulted in continuing strong visitation leading to more sales from the food and beverage outlets.
The Trust’s net assets stood at AU$101.1m (US$64.4m), supported by an unused debt facility of AU$14.9m (US$9.5m).
A spokesperson for the board of directors said: “Whilst the post-pandemic recovery continues, challenges remain, including a continued shortfall in international visitors and cost pressures driven by ongoing inflation, increased compliance and preparation for regulatory change.
“The Trust’s financial position remains healthy. The Trust has adequate working capital, meets all liquidity requirements, and continues to operate as a going concern. The Trust remains positive regarding its longer-term trading while following an overall low risk appetite.
“The strategy is to drive future growth based on three key strategic areas: electronic gaming; table games including premium play; and hotel operations, supported by entertainment. The future performance of the Trust will primarily rely on the local economy and on tourism to Cairns, the Great Barrier Reef and the wider Far North Queensland region.
“The casino industry is highly regulated. A significant change in casino-related legislation could have an impact on the economic trading at the complex. This risk is mitigated by monitoring government policy and engagement with the Queensland Government and gambling regulator.
“There is increased oversight in relation to anti-money laundering and responsible gambling by the relevant authorities. The Board of the Responsible Entity continues to receive regular reporting from the Operator of the Reef Hotel Casino on a range of matters including implementation and management of the anti-money laundering and counter-terrorism financing program and safer gambling and harm minimisation measures.
