PERTH-based gaming group Burswood Ltd said today that identifying further cost savings and productivity improvements will continue in 2001/02.
“To date, cost reduction measures will result in annual savings in excess of $6.0 million before tax, the benefits of which will be ongoing,” said managing director John Schaap.
Burswood today reported a net profit for 2000/01 of $22.1 million, down from $32.1 million previously.
Total revenue fell 6.4 per cent to $346 million.
Mr Schaap said that the result reflected challenging business conditions during a period of organisational restructuring and the effects of disruption caused by major construction work to improve the Burswood International casnio’s facilities.
It also reflected a very low win percentage on Togel Hongkong international commission business.
“Whilst the result is 31 per cent below last year, it includes a number of positive signs. We achieved further growth in video gaming machine revenue and made significant improvements to the underlying operating efficiency of the business,” he said.
He said the result also highlights the impact of win percentages on profit results. If expected win percentages for international commission business had been achieved, net profit would have been around $7.6 million higher in 2001 and around $4.7 million lower in 2000 than figures reported for those years.
The result included an expense after tax of $2.0 million relating to restructuring costs.
The restructuring will achieve further ongoing annual savings of around $4.0 million after tax.
Burswood’s overall gaming revenue fell $20 million to $277.2 million, mainly as a result of a low win percentage on international commission business.
Revenue from international commission business fell to $54.5 million from $79.3 million.