• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Wednesday 27 August 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Echo’s Profits Fall 30%; CEO Quits

Newsdesk by Newsdesk
Mon 10 Feb 2014 at 03:26
1
SHARES
26
VIEWS
Print Friendly, PDF & Email

Echo Entertainment Chief Executive John Redmond has resigned after a little more than a year on the job in the wake of second-half results showing that profits at the embattled Australian casino operator had fallen more than 30%.

The drop in net profit to A$46.1 million was largely due to a $15.5 million one-off cost from restructuring some of the company’s financial arrangements late last year. Excluding that the company made $71.5 million, an increase of 1.3% year on year. But it came through extensive cost-cutting, which saw operating expenses down 4.5 per cent.

Gross revenue dropped 7.3% to $901 million, which the company attributed to weak consumer sentiment. Gross revenue from VIP gambling was down 9%. Pre-tax earnings at The Star casino in Sydney, the company’s flagship, were down 5.7% to $90 million.

It’s been a tough year all the way around for Echo and Mr Redmond. The American stepped in last October, succeeding another American, Larry Mullin, who resigned amidst an aggressive bid by rival James Packer to take control of the company at the same time that Mr Packer’s Crown Resorts was seeking approval for a competing casino in Sydney, where Echo had held an exclusive license. Mr Mullin quit not long after Mr Packer engineered the ouster of Chairman John O’Neill’s predecessor, John Story, and Mr Redmond came in just as Mr Packer secured the tacit support of New South Wales Premier Barry O’Farrell for his $1.3 billion Crown Sydney across Darling Harbour from The Star. Mr Packer was awarded the license last June after Echo’s counter offer to invest in a major expansion at The Star was dismissed by a panel Mr O’Farrell had appointed to decide the issue of a second license in Australia’s largest city.

In Queensland, where pre-tax earnings fell nearly 30% in the half-year, Echo similarly is having to defend its historical dominance of the market against potential rivals following a decision by the government there to open up the state to at least three more casinos. Echo is pitching the state on a new destination-scale resort to replace its aging Treasury Casino in Brisbane, where Crown is lobbying heavily for one of the licenses. Overseas developers also have expressed interest, and it’s possible Echo’s Jupiters Gold Coast will lose its monopoly in that market as well.

On the plus side, the company has managed to get $70 million for its Jupiters Townsville casino on Queensland’s northern coast in a sale to hospitality company Colonial Leisure Group, and Mr Redmond described the start of the new financial year as “encouraging,” with revenue up across all properties in January, although he declined to give figures.

Mr O’Neill said Mr Redmond will return to the United States following a three-month transition period in which CFO Matt Bekier will take over the reins.

Mr Bekier, a former CFO of Tabcorp, moved to Echo following its creation in 2011 in a spinoff of the betting giant’s casino assets.

“Matt knows the company and the Australian market exceptionally well and has been working closely with John in re-establishing a path towards profitable growth,” Mr O’Neill said. “The board is confident that Matt is the right person to lead the group forward.”

RelatedPosts

A moral defense of gambling

Star Entertainment Group says lender group’s terms around requested covenant waivers “unacceptable”

Wed 27 Aug 2025 at 13:47
Novomatic granted vendor license by UAE’s General Commercial Gaming Regulatory Authority

Novomatic’s stake in Ainsworth Game Technology edges above 55%

Wed 27 Aug 2025 at 13:16
US media giant Fox Corp said to be eyeing racing and wagering arm of Australia’s Tabcorp

Tabcorp reports vastly improved FY25 revenue, profit as Australian trading conditions show improvement

Wed 27 Aug 2025 at 10:45
Ainsworth flags 1H25 revenue growth on Australian market strength but Novomatic takeover facing opposition by family of founder

Ainsworth and Novomatic terminate scheme of arrangement following revolt by shareholder block, unconditional takeover offer remains

Wed 27 Aug 2025 at 05:17
Load More
Tags: AustraliaEcho EntertainmentJohn Redmond
ShareShare
Newsdesk

Newsdesk

Current Issue

Editorial – Better late than never

Editorial – Better late than never

by Ben Blaschke
Thu 31 Jul 2025 at 07:13

Inside Asian Gaming has in recent weeks been hearing increasing chatter around a possible move by Vietnamese authorities to introduce...

Angel’s Yasushi Shigeta

Angel’s Yasushi Shigeta

by Ben Blaschke
Thu 31 Jul 2025 at 07:08

Yasushi Shigeta, Chairman and owner of one of the world’s largest gaming industry suppliers, Angel Group, sits down with Inside...

The Magic Number

The Magic Number

by David Bonnet
Thu 31 Jul 2025 at 06:41

In this in-depth deep dive into the evolution of the Asian gaming landscape, David Bonnet argues that many regional jurisdictions...

Rashid Suliman – A road well traveled

Rashid Suliman – A road well traveled

by Ben Blaschke
Thu 31 Jul 2025 at 02:45

Rashid Suliman, Vice President of Global Gaming Asia-Pacific for casino solutions provider TransAct Technologies, provides some insight into his unique...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
HKUST
NWR

Related Posts

A moral defense of gambling

Star Entertainment Group says lender group’s terms around requested covenant waivers “unacceptable”

by Ben Blaschke
Wed 27 Aug 2025 at 13:47

Australia’s Star Entertainment Group has described as “unacceptable” the terms put forward by its lenders to provide requested covenant waivers for the September and December quarters on its AU$430 million (US$279 million) loan. The waivers are seen as crucial for...

Novomatic granted vendor license by UAE’s General Commercial Gaming Regulatory Authority

Novomatic’s stake in Ainsworth Game Technology edges above 55%

by Ben Blaschke
Wed 27 Aug 2025 at 13:16

Austrian gaming giant Novomatic and its founder Johann Graf have increased their stake in Australian slot machine supplier Ainsworth Game Technology, which now sits at 55.2%. According to a filing with the Australian Securities Exchange, the combined entities of Novomatic...

IAG announces 100 official judges for 2025 IAG Academy IR Awards at Newport World Resorts on Tuesday 9 September

IAG announces 100 official judges for 2025 IAG Academy IR Awards at Newport World Resorts on Tuesday 9 September

by Newsdesk
Wed 27 Aug 2025 at 13:03

Inside Asian Gaming is pleased to announce the 100 judges who will lend their expertise on the Judging Panel for the 2025 IAG Academy IR Awards. The Awards will be held at the Manila Ballroom at Manila Marriott Hotel, Newport...

Live Casino Streaming: Requirements every operator should know

Live Casino Streaming: Requirements every operator should know

by Newsdesk
Wed 27 Aug 2025 at 11:49

The live casino market is experiencing unprecedented growth, with projections showing the global live dealer games segment reaching $34.2 billion by 2033 (Growth Market Reports). As operators compete for players' attention in this booming sector, the quality of their streaming...

Your browser does not support the video tag.


IAG

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • English