Adelaide Casino’s 2014 profit has been held back by the ongoing disruption from reconstruction of its gaming areas, the company’s full-year report says.
The Casino reported strong growth in its international business and a slight drop in local revenue.
“Excluding the international business, Adelaide Casino’s revenue fell 2 per cent to $148.1m and net profit fell 18 per cent from $35.2m to $28.8m, reflecting the significant disruption to the operations caused by the extensive construction works as we systematically work through and transform the totality of the Adelaide Casino,” the company said in a statement to the stock exchange.
“This resulted in as much as a third of gaming areas being closed at any one time as construction progressed.
“The contraction in (net profit) also reflects the relatively high fixed cost structure of the business and the difficulty in managing the cost structure over periods of relatively short disruption.”
The physical transformation of the Adelaide Casino follows a deal with the State Government that allowed new gaming systems, new technology and cashless gaming.
“We expect the ongoing construction at the Adelaide Casino and the reconfiguration of main floor product to continue to disrupt results through (the rest of 2014),” the company said.
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“The property will be relaunched to the Adelaide and interstate markets towards the end of the the year.”
The Casino’s new signature restaurant, Sean’s Kitchen, will open at the end of September and a new French Vietnamese restaurant will open in December/January.
The Casino’s financial report noted that it had continued to see the benefit of changes in the surrounding Riverbank precinct
The internal transformation to date includes a new Baccarat Pavilion, Platinum Room, Barossa Room and VIP Room between December 2013 and June 30, 2014.
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