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, despite ongoing challenges from lower international visitation and inflation-driven cost pressures.

• Total revenue and other income was $25.518 million, slightly down from $26.291 million in 2023, mainly due to higher costs at the Reef Hotel Casino complex impacting rental income.

• Unitholder distributions totaled 20.42 cents per unit, fully distributing profit, compared to 21.69 cents per unit in 2023.

• Net assets stood at $101.131 million with an unused debt facility of $14.999 million at year-end.

Financial highlights

• EBITDA was $15.343 million, down from $15.726 million year-over-year.

• Profit for the year was $5.084 million, compared to $5.371 million in 2023.

• Total expenses decreased to $15.246 million from $15.462 million, with lower repairs and maintenance offsetting higher depreciation and insurance costs.

• Cash and cash equivalents at year-end were $3.186 million, down from $7.345 million.

• Capital expenditure was $8.184 million, focused on gaming machines, operational assets, and safety upgrades.

Outlook and guidance

• The Trust expects continued challenges from inflation, elevated interest rates, and slow recovery in international tourism, but remains positive on long-term trading.

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

• Growth strategies center on electronic gaming, table games (including premium play), and hotel operations.