Reef appoints new CEO as revenues fall 75%

The resort and casino in Australia was severely hit by the pandemic but directors have seen positive results since reopening.

Australia.- Reef Casino Trust has appointed a new CEO for the Reef Hotel Casino.

The casino’s former chief operating officer (COO) and general manager, Paul McHenry, has stepped up to the position replacing Allan Tan.

Tan will remain at the company as executive director.  

The company has also posted its half-year financial results, showing revenues of AU$1,856,000 (US$1.33 million). That’s a drop of 75.5 per cent on the same period in 2019.  

Overall casino revenues were 56.3 per cent lower than last year due to Covid-19. Electronic games revenues dropped 57.2 per cent year-on-year and table games revenues fell 54.5 per cent. 

The six months to June 30 generated net losses of AU$23.7m (US$17m) and negative EBITDA of -AU$1.7m (-US$1.24m). 

The casino, hotel and food and beverages outlets were shut by the Queensland Government from March 23 due to the Covid-19 pandemic and only reopened on July 3. 

The company said: “This shut down period represented 55 per cent of the first half year during which time there were essentially no revenues at the Reef Hotel Casino.

“We are pleased to report that so far. Trading has resulted in positive rentals paid to the trust and consequently in the trust returning to profitability.” 

The company will not distribute dividends for the period. It has decided its balance sheet does not need additional cash facilities or liquidity.