Echo Reports Low Win Rate Against VIPs
One of Australia’s largest gaming and entertainment companies, Echo Entertainment, has announced that their casino VIP business has “stabilized” following a drop of almost 34 percent in international VIP rebate revenue in the early part of this financial year.
The company experienced an “abnormally” low win rate of only one percent for their international VIP business. This was a drop of 33.8 percent from the same period last year. However, according to a report from the company’s chief, Matt Bekier at the annual general meeting held at The Star, their flagship operation in Sydney, the company experienced positive results in all properties.
“Across the group, year-to-date total domestic business, including non-gaming but excluding international VIP rebate, grew by 8.7 percent on the prior comparable period which included revenue from the Townsville property for the first three months,” stated Bekier.
“The main driver of our continued growth is the solid expansion of our domestic gaming business, especially here at The Star.”
The company has been focusing on customer segmentation, customer service and loyalty programs and these appear to have paid off. Moving forward, they expect an increased wave of tourism from Asia, particularly China due to the growth of an affluent middle-class and the desirability of Australia as a tourism destination. This is expected to create a boon to the company’s international revenue.
Echo shareholders participated in a vote on a proposal for the company to be rebranded as The Star Entertainment Group with a view to bring its Sydney, Brisbane and Gold Coast venues under the same label.
April 16, 2017