Casinos operator Echo Entertainment Group has lifted its annual profit by nearly 60 per cent, with improved returns from domestic and high-rolling gamblers, and says it's on the path for growth.
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, which is speculated will cost around $2 billion.
Echo says every segment of its business contributed to earnings growth and record revenues in fiscal 2015.
"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.
Also, adjusted gross revenue from high-rolling gamblers grew considerably - up 53 per cent to $662 million.
In the second half of fiscal 2015, more VIP gamblers visited both The Star and Jupiters.
Mr Bekier said casinos internationally were benefiting from a growing number of sophisticated Chinese who were comfortable travelling.
Many of Echo's customers were repeat visitors who had another reason to come to Australia such as family or property investments.
VIP growth at Jupiters in fiscal 2015 was largely based on two groups of players who wanted to get in "a bit of sun and golf".
Mr Bekier said the new VIP facilities at the refurbished Jupiters and the new Queen's Wharf casino resort in Brisbane would establish a new standard and enable Echo to offer VIP gamblers a multi-destinational visit encompassing Sydney, Brisbane and the Gold Coast.
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.
However, refurbishments and expansions at Jupiters Gold Coast and The Star were likely to cause some disruption to the group's business.
Echo is spending $345 million on improvements at Jupiters ahead of the 2018 Commonwealth Games, and $500 million over the next five years on improvements at The Star.
Morningstar analyst Brian Han said Echo had delivered a good result, especially in its business focused on domestic gamblers.
Mr Han said Echo had had a good run upwards lately and investors were now taking profits.
Shares in Echo were 12 cents lower at $4.98.
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
AAP tsc/gfr
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