ASX: Reef Hotel Casino (RCT) posts record profits in Cairns business
The Reef Hotel Casino Trust has performed a stunning turnaround to post its second highest profits on record despite being hammered by Covid restrictions.
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THE Reef Hotel Casino Trust has performed a stunning turnaround to post its second highest profits on record despite being hammered by Covid restrictions.
It was a tumultuous year for anyone in the hospitality business with border closures, snap lockdowns, QR codes, masks, social distancing requirements and serious health fears across the entire customer base.
Somehow, the city’s only casino managed to deliver $14.72m in distributable profits to shareholders as dividends – a whopping 203 per cent increase on 2020 and second only to 2015 as its best year ever.
The Reef Hotel Casino Trust’s (RHCT) latest report to the ASX describes a monumental reversal of the previous year’s dismal earning.
RHCT executive director Allan Tan said the results were a credit to the operation’s staff who worked under difficult conditions.
“It was a Covid year, we mustn’t forget that,” he said.
“We were only shut for three days in August but we had restrictions, we had to adhere to Queensland Health directives, mask wearing came in towards the end of the year.
“We couldn’t do this, we couldn’t do that – clearly there were challenging restrictions imposed by the government.
“But this is only about $200,000 short of our second best year in history.
“Credit has to go to the staff and management because I think they handled the challenge posed by Covid-19 very well.”
The report pays tribute to former RHCT board member Keith DeLacy who resigned last year before losing a battle with cancer.
Former Tourism Tropical North Queensland chairwoman Wendy Morris was appointed as his replacement this month following a period of government probity.
Pokie machines remain the casino’s biggest revenue source, with marketing efforts under way “to target the markets that have a higher chance of visiting Cairns”.
Profits have slowed in the early months of 2022 with government mandates and mask restrictions having an impact on numbers through the door.
Mr Tan attributed the subdued activity to community caution over the spread of Omicron.
“With more freedom of movement and less restrictions, it’s reasonable to expect southerners will return in larger numbers from interstate leading towards Easter and beyond.
“I think we can hopefully look forward to a good high season later in the year.”
Mr Tan said Covid still posed a lot of uncertainty.
“We have to manage our costs properly,” he said.
“We cannot throw caution to the wind, because who knows what Covid might turn out to be.”
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Originally published as ASX: Reef Hotel Casino (RCT) posts record profits in Cairns business
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