High rollers help boost Echo profit Media Man Int

High rollers help boost Echo profit - 12th August 2015

Echo chief executive Matt Bekier says Echo has had a great year and has more in the tank.

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High-rolling gamblers, especially from northeast Asia, have helped boost casinos operator Echo Entertainment Group's reported annual profit by nearly 60 per cent.

Echo operates The Star casino in Sydney, Jupiters Gold Coast, and the Treasury casino in Brisbane. It has also won the right to develop a new casino resort at Brisbane's Queen's Wharf.

Echo says every segment of its business contributed to earnings growth and record revenues in the 2014/15 financial year.

"We've had a great year," Echo chief executive Matt Bekier said on Wednesday.

"We think there's more in the tank. We now have a profitable platform for growth."

Better marketing, loyalty programs, better product offerings and stronger economic conditions boosted the group's operations focused on domestic gamblers.

Adjusted gross revenue from high-rolling gamblers grew considerably - up 53 per cent to $662 million.

Mr Bekier said that in the second half of fiscal 2015, more VIP gamblers visited both The Star and Jupiters, even though the offering for VIP gamblers in Queensland was still being improved.

"There was a lot of repeat business," he said.

VIP growth at Jupiters was largely based on two groups of players who wanted to get in "a bit of sun and golf".

Echo's net profit rose to $169.3 million in the year to June 30, up 59.3 per cent from $106.3 million a year earlier.

Normalised net profit, which removes significant items and the volatility of Echo's operations focused on international VIP gamblers, rose 52 per cent to $219 million.

Mr Bekier said that in the first five weeks of the current financial year, Echo was experiencing good momentum from fiscal 2015.

The VIP business was "doing fine".

However, refurbishments and expansions at Jupiters Gold Coast and The Star were likely to cause some disruption to business.

Echo is spending $345 million on improvements at Coast Jupiters ahead of the 2018 Commonwealth Games, and $500 million over the next five years on improvements at The Star.

Shares in Echo were eight cents lower at $5.02 at 1252 AEST.

VIP GAMBLERS HELP BOOST ECHO PROFIT

* Reported net profit up 59.3 pct to $169.3m

* Revenue up 18.5 pct to $2.14b

* Fully franked final dividend up two cents to six cents