Reef Casino Trust · ASX:RCT
Reef Casino Trust — H1 2009 Earnings Presentation
8 slides from Reef Casino Trust's earnings presentation, Aug 19, 2009
Slide 1: Reef Casino Trust Half-year ended 30th June 2009 / Key Points
REEF CASINO TRUST For personal use only Half-year ended 30th June 2009 1 Key Points • Distributable profit up 19% • Good underlying earnings growth at Reef Hotel Casino • Costs well controlled • Distribution of 11 cents per unit (tax deferred) • Valuation of Trust property 2 1
Slide 2: Half-Year Distributable Profit
Half – Year Distributable Profit For personal use only 2009 2008 $’000 $’000 Revenue Rental Income 11,592 11,027 Other Income 244 165 Total revenue 11,836 11,192 Total expenses 5,900 6,186 Profit 5,936 5,006 Earnings per unit 11.9 cents 10.1 cents 3 Half - Year Distributable Profit • Rental revenue
Slide 3: Distribution to Unitholders / Balance Sheet
Distribution to Unitholders For personal use only • 11 cents per unit (tax deferred) • Payment date – 25 September 2009 • Balance in ‘undistributed income’ $3.6 million (7.2 cents/unit) 5 Balance Sheet • Remains robust • Bank loan unchanged at $16.5 million. • Low gearing / bank debt level • $2 mill
Slide 4: Electronic Gaming Machine Tax / Independent Valuation
Electronic Gaming Machine Tax For personal use only Independent Valuation • Tax rate for electronic gaming machines from 10% to 20% • Effective 1 July 2009 • Net impact Y/E Dec 09 approx $1.25 mil • Independent complex property valuation 7 Electronic Gaming Machine Tax Independent Valuation • Conseq
Slide 5: Economic Conditions / Highlights
Economic Conditions For personal use only • Global financial crisis • Tourism soft 9 Reef Hotel Casino Highlights • Strong 1st half • Rentals to Trust up 5.1% – Better quality casino patronage – Successful cost management – Pursued successful business strategy 10 5
Slide 6: Successful Business Strategy / Casino Operations
Successful Business Strategy For personal use only • Teamwork in integrated complex • “Must see, must visit” venue • Employer of choice • Best gaming venue • Best 5-star hotel • Successful cost management strategy 11 Casino Operations • Rental contributions up 4% • Casino Revenues up 2.4% – Table ga
Slide 7: Hotel Operations / Improving the Complex
Hotel Operations For personal use only • Rental contributions up 21% • Even though room revenue down 11.4% • Food and beverage sales held up • Strong cost recovery effort. 13 Improving the Complex • 2 Main Casino complex entrances renovated • Flinders Bar & Grill rebuilt • New gaming machines • Ongo
Slide 8: Outlook 2009
Outlook 2009 For personal use only • Queensland government impose hike in tax rate, but expect improved regulatory processes. • Global financial crisis – tourism impact. • Proven business strategy in place. • Underlying growth at Reef Hotel Casino. • Distributable profit to hold up well compared to