Reef Casino Sinking
17 April ASX announcement:
The Trust’s distributable profit* for the 1st half year from 1 January 2019 to 30 June 2019 is currently estimated to be between $1.7 million to $3.0 million. This current estimate is lower than the actual result for the same period last year. This is due to :-
Softness in Cairns tourism – at a level not experienced for a number of years, made worse by an extraordinary wet season in the 1st quarter of the year.
Short term variability in casino table gaming because of a soft gaming and Chinese tourist market including a soft Chinese New Year season, at a level not experienced in recent years.
A subdued local economy due to soft tourism and increased local competition which has had an impact on casino slots gaming and to a lesser extent on hotel accommodation. A further update will be provided at the Annual General Meeting on 24 May 2019.
Then the AGM on May 24:
On 17th April 2019, a trading update advised that the Trust’s distributable profit for the 1st half year from 1 January 2019 to 30 June 2019 was estimated to be between $1.7 million to $3.0 million. Our current estimate of the distributable profit is between $1.2 million to $1.7 million.
Looks like this:
The blue 2019 bar is the top end of the revised 2019 range.
How are the numbers on a global tourism hub anchored by a new casino working out again?
Great concise (and perhaps terse) comments re Reef Casino. What are the other reasons other than weather for such a disastrous first half profit result
Thanks Bruce. The most significant factor I can see is that the Casino has been struggling for some time in competition with local trade on pokies. We have heard this for a while now from the Casino. It isn’t lost on me that the big three local sports clubs Cazalys/Souths/ Trinity Beach joint marketing on radio. There are some problems with available numbers for specific venues but the casino doesn’t seem to be competing here. Regardless of any promotion as tourism assets Casinos in Australia remain reliant on pokies and domestic trade.