High rollers raid Cairns casino
HIGH rollers have put a dent in the profits of the Reef Hotel Casino in Cairns.
The Reef Casino Trust's distributable profit was down $820,000 to $10.8 million for the year ending December 31, 2012, compared with $11.6 million in 2011.
Net profit fell $400,000 to $5.4 million. Overall revenue decreased $721,000 to $21.3 million while expenses increased $99,000 to $10.5 million.
Chief executive officer Allan Tan said the casino's win rate from premium players was lower, although revenue was on par with 2011.
"We won less in 2012 but the level of activity was comparable to 2011 ... it's a game of chance," he said.
Mr Tan said despite the fall in premium play wins, "all key revenue-generating segments posted growth in 2012 compared to 2011".
He said the first week of Chinese New Year festivities appeared to be better than last year and the trust was spending nearly $2 million refurbishing the hotel this year.
"The local economy, including tourism, remained flat in general," he said in the trust chairman's annual review.
"However the China tourist market continued to grow. Overall, trading conditions were challenging but manageable."\
The report said the number of people through the casino was 7.9 per cent lower in the first half, due to the temporary closure of the second level for the $2.5 million renovations of the sports arena, but numbers increased 4.5 per cent in the second half.
Main-floor revenues were up 5.8 per cent, electronic gaming machine revenues were up 0.6 per cent and hotel room revenues were up 6 per cent. Food and beverage fell 1.6 per cent because of the closure of level two.
Mr Tan said $1.75 million was being spent on the 128 rooms in the Pullman Reef Hotel Casino, with new big-screen TVs, bedheads, furniture, fabrics and lighting. Work was expected to be completed by the middle of the year.
Chairman Ben Macdonald said the new sports arena's contribution was encouraging.
"The refurbishment of all the guest rooms in our Pullman Reef Hotel Casino in the first half of 2013 will enable us to strengthen our hotel's leading position as the best five-star hotel in Cairns," he said.
"The trust's balance sheet is expected to remain strong and the Reef Hotel Casino business is expected to continue to generate strong cash flows.
"The overall position remains strong and healthy."
NEW CAIRNS.COM.AU COMMENT POLICY
We welcome your comments on this story. Comments are submitted for possible publication on the condition that they may be edited. Comments submitted without a full name and suburb/location will not be considered for publication. Please read our full comment policy and publication guidelines.