Reef Casino Trust (RCT) H1 2024 earnings summary

Executive summary

• Revenue for the half year ended 30 June 2024 was $11.62 million, down 0.8% compared to the same period in 2023, with net profit attributable to members at $2.17 million, down 7.5% year-over-year.

• Distributable profit was $4.34 million, representing 100% of distributable profit paid as an 8.71 cents per unit distribution.

• The Trust maintained a robust balance sheet, with minimal debt and strong liquidity.

• Management effectively navigated ongoing cost pressures and a slow recovery in international tourism.

Financial highlights

• EBITDA for the half year was $6.89 million, down from $7.26 million in the prior year.

• Operating expenses increased to $4.74 million from $4.46 million, mainly due to payroll and insurance.

• Earnings per unit were 8.71 cents, compared to 9.41 cents in the prior year.

• Cash and cash equivalents at 30 June 2024 were $2.82 million, down from $7.35 million at 31 December 2023.

• Net tangible asset backing per unit was $1.33, up from $1.32 at 30 June 2023.

Outlook and guidance

• July and August 2024 trading remained profitable, with expectations for continued challenges from inflation, elevated interest rates, and slow international tourism recovery.

• The Trust will continue its low-risk approach, focus on cost control, and monitor capital investment closely.

• Growth in cruise ship arrivals and airline capacity is expected to support visitor numbers.