Asset sale big boost to Federal’s result
FEDERAL Group has nearly doubled its profits over the past year due to a one-off sale of non-core assets.
The company’s financial report, lodged with the Australian Securities and Investments Commission in the name of Mulawa Holdings, showed the Farrell family made a profit of $24.4 million in the year to the end of June — up from $13.9 million the previous year.
“Federal Group’s improved earnings position is a result of once-off asset sales in FY 2017-18,” executive general manager Daniel Hanna said.
“When comparing Federal Group’s profitability with the previous year, the profit position of the company is in line with 2016-17 when the one-off asset sales are removed.”
The company generated $543 million in revenue and paid nearly $75 million in gaming taxes and licence fees.
The report notes biological assets including 102 Arabian horses valued at $994,000, and its recent purchase of a Queensland-based company called Odyssey Gaming, which provides Federal Group with control of the system it uses to monitor electronic gaming machines in Tasmanian pubs and clubs.
Federal Group’s businesses include Wrest Point Casino and the Henry Jones Art Hotel in Hobart, Launceston’s Country Club Casino and the luxury East Coast hotel Saffire.
Jannette Armstrong, a spokesperson for the union representing casino workers, United Voice Tasmania, said workers reacted angrily to news of Federal Group’s profit at the weekend.
The union has been campaigning for a pay increase for casino workers, who have rejected the company’s offer of 2 per cent a year over three years. It resumes negotiations with Federal Group today.
“What we’ve beenn hearing from workersers across the board is a whole lot of anger in re-response to the media reportingreporting [about Federal’s profits],”fi]” sheh said.
“It doesn’t make a difference that it was generated by one-off asset sales. The Wrest Point workers in particular feel lied to and disrespected and will most likely not settle for less than a three per cent [wage increase] given this report.
“For the last 18 months they have been in negotiations with Wrest Point they have been crying poor.” The 2016-2017 Tasmanian Liquor and Gaming Commssion’s annual report showed a reduction in casino revenue from $89.8 million in 2015-2016 to $84.3 million in 2016-2017; and a reduction in revenue in hotels and clubs from electronic gaming machines from $147.5 million in 2015-2016 to $142.1 million in 2016-2017.