The owner of Casino Canberra sticks to the opinion that the future of the gambling venue remains bright, in spite of posting another loss amid a revenue decline following the failure of the casino acquisition deal with Blue Whale Entertainment. Now, regardless of all difficulties faced along the way, Casino Canberra’s operator will make an effort to see the ACT Government’s permission to redevelop the iconic gambling site.
Aquis Entertainment, which operates the casino, has filed a report to the Australian Stock Exchange, revealing an operating loss of AU$3,957,193 in the year that ended on December 31st, 2019. The figure represents a slight increase from the AU$3,396,832 loss the casino reported in the previous fiscal year.
Canberra Casino’s revenue saw a 6.14% decline to AU$24,433,082 from AU$26,032,797 posted in 2018. Furthermore, the casino revealed a decline of its earnings before interest, tax, depreciation and amortisation (EBITDA) from AU$625,885 in 2018 to AU$72,244.
Another problem that the Canberra Casino encountered over the last fiscal year is the fact that the gambling venue attracted fewer foreign high-roller customers. Aquis Entertainment, however, highlighted the fact that it had managed to cut costs by 4.24% as part of its efforts to minimise the losses, including marketing expenses and wage payments. Some employees chose to leave the casino venue, which unleashed a staff restructuring, while the casino operator also initiated an overhaul of its VIP program in order to become more focused on profitable areas and make its service offers tailored to suit VIP customers’ needs.
Aquis Intends to Renew Its Bid for Canberra Casino’s Redevelopment
Aquis Entertainment has been encouraged for the performance of the gambling venue over the second half of the year when its revenues increased and less volatility was registered. That is why it has revealed expectations that the trend to stabilisation would continue over the ongoing year. The company, however, has not revealed its prediction on how the coronavirus outbreak would impact the operations of Canberra Casino, as it has already hit the tourism market hard.
As Casino Guardian reported earlier in 2020, the AU$32-million deal as part of which Blue Whale would have purchased Canberra Casino by becoming the main shareholder in Aquis Canberra Holdings failed, as the two companies did not manage to meet a regulatory deadline of the ACT Government. Currently, Aquis is pursuing Blue Whale Entertainment to pay it a break fee estimated at AU$280,000.
Following the collapse of its deal with Blue Whale, Aquis has recently revealed that it is free to resume its bid for the gambling site’s redevelopment, with the company being currently in talks with the ACT Government. Back in 2018, the authorities said now the AU$330-million unsolicited bid of the company to redevelop the Canberra Casino’s precinct after no consensus regarding the conditions for the project was reached.
- Author
Olivia Cole
