Casino bounces back to distribute $11.5m in profit

A STRONG six months has the Reef Casino Trust on track to record $11.5 million in total distributable profit for 2017.

In an announcement on the Australian Securities Exchange, executive director Allan Tan said the company’s estimated net profit for 2017 was about $5.75 million “after deducting distributions to unitholders”.

The $11.5 million figure is about $400,000 below the Trust’s total distributable profit for 2016.

But after a tough start to the year, the company has rebounded in the past six months.

“So far in the second half of 2017, the refurbishment of Level One of the Reef Hotel Casino complex – which was completed in the first quarter of 2017 – positively contributed to the performance of the Reef Hotel Casino,” Mr Tan said.

“Overall hotel performed well.

“Overall casino operations also performed well, with electronic gaming taking on the operations local competition more effectively.”

The Cairns Post reported in August that a slower than anticipated Chinese New Year had contributed to a “soft” start to 2017 for the CBD casino. The actual distribution to shareholders will be decided at the trust’s board meeting in mid-February, following the “approval of the audited results”.

Shares in the Reef Casino Trust (RCT) jumped following the ASX announcement, and were yesterday trading at about $3.40 each.