Friday dump: Reef Casino

Was looking for a Friday dump from the airport but it was Reef Casino (RCT) which got in with an annual result after market closed. $10.1 million is the lowest result since 2010 as flagged in the distribution estimate in December: Hard grind at Reef

Commentary wasn’t as forthcoming as hoped particularly nothing on trading since and into the Chinese new year period.

Complex performance Rental paid to Trust  Total complex rentals to the Trust were 4.4% lower due to more challenging trading and economic conditions in 2018 even as visitations to the casino increased by 6.0%.
Casino 

Electronic games Revenues were 4.0%# lower than 2017. We continued to implement measures and take action to increase our competitiveness in the local market. 

Table games Revenues were 12.8%# higher than 2017. Stronger premium play was in a large part due to an improved Chinese New Year tourist season. Softer grind play was mainly due to an overall softer China tourist market. Hotel 

Room accommodation Record revenues were 17.8% higher than 2017. Successful yield management, product packaging and leveraging off Accor’s global and Australian network continue to be key to a good performance.

 Food and beverage Revenues were 0.2%# higher than 2017. Our food and beverage facilities continued to play a key role in supporting our casino operations.
# On a comparative basis without t he impact of AASB 15 Revenue from Contracts with Customers applied for the first time in this period.

1) Room accommodation revenues are driven by both higher occupancy and higher rates associated with reduced capacity in Cairns for the period which is also mentioned previously in the report and in previous posts here. Observers of NVS/IVS expenditure for TTNQ should note increased accommodation rates in recent years.

2) EGM (pokie) revenue down -4.4% is a stark contrast to the regular numbers posted here for booming pubs and clubs in Cairns: Pokies finally rolling over

It’s also a stark contrast to the most recent report from Star Group (SGR) where the annual results report this week pretty much boasted about gains in EGM share for SEQ and particularly Star/Jupiters Gold Coast.

Insurance was also noted in cost increases.

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