Reef Casino Trust (RCT) H2 2024 earnings summary

Executive summary

• Distributable profit for 2024 was $10.168 million, stable and in line with pre-pandemic levels, with 100% distributed to unitholders at 20.42 cents per unit, down from 21.69 cents in FY23.

• Total revenue and other income was $25.518 million, slightly lower than FY23, mainly due to higher costs at the Reef Hotel Casino complex despite higher aggregate revenues.

• Net assets stood at $101.131 million, with a largely undrawn $15 million debt facility expiring in 2028.

• The Trust’s sole investment remains the Reef Hotel Casino in Cairns, with performance closely tied to local and tourism markets.

Financial highlights

• Revenue and other income: $25.518 million (down from $26.291 million in FY23).

• EBITDA: $15.343 million (FY23: $15.726 million).

• Net profit: $5.084 million (FY23: $5.371 million).

• Operating expenses: $10.175 million (FY23: $10.565 million), with lower repairs and maintenance offsetting inflationary pressures.

• Distributions: $10.170 million paid/payable (20.42 cents per unit), compared to $10.802 million (21.69 cents) in FY23.

• Cash and cash equivalents at year-end: $3.186 million (down from $7.345 million in FY23).

Outlook and guidance

• Ongoing inflation, elevated interest rates, and slow recovery in international tourism remain challenges.

• The cruise ship market and airline capacity to Cairns are improving, with strong forward bookings for business events.

• Cost control and careful capital expenditure will remain a focus in 2025.