Australian gambling operator Echo Entertainment posted on Wednesday information about its financial performance for the year ended June 30, 2015. The company reported a 59% increase in net profit to A$169.3 million. The considerable rise was attributed to the newly introduced loyalty and marketing programs, which resulted in strong growth in domestic revenue.
Normalized net profit of A$219 million was posted for the period in review, up 52% year-on-year. Revenue increased 18.5% to A$2.14 billion.
The company pointed out that the strong growth was mainly due to a growth in both its international and domestic VIP rebate businesses as well as the excellent performance demonstrated by its Sydney-based casino The Star. In fact, up until recently, Echo Entertainment was the sole license holder for the provision of gambling options in Sydney. However, James Packer’s Crown Resorts was awarded a license for the development of an integrated resort in the Barangaroo area.
Matt Bekier, Managing Director of Echo Entertainment, commented that the operator was off to a good start of the new fiscal year. The executive also pointed out that they will build on the momentum they have gained due to the strong growth in VIP rebate business, which was completely in line with board’s expectations.
However, the gambling operator warned that revamp works at The Star and Jupiters Hotel and Casino on the Gold Coast are likely to impact revenues for the fiscal 2016 in a negative manner.
Back in July, the Queensland government announced that Echo Entertainment was chosen to develop an integrated casino resort at Brisbane’s Queen’s Wharf precinct. The multi-million dollar development is to feature a number of gambling, entertainment, retail accommodation, and food and beverage options and will aim at drawing Chinese high rollers, known to be the fastest growing and biggest spending portion of visitors of the state and Australia as a whole.
John O’Neill, Chairman of Echo Entertainment, commented that they are particularly excited about this project and that they are looking forward to “progressing the development” in order to present the state with major economic and numerous other benefits. The operator will be working together with Hong Kong-based partners Far East Consortium and Chow Tai Fook Enterprises on the ambitious project.
Currently, the gambling operator runs three casinos across Australia – The Star in Sydney, the Jupiters Hotel and Casino on the Gold Coast, and Treasury Casino & Hotel in Brisbane.
