AQUIS ENTERTAINMENT LIMITED 2016 HALF YEAR RESULTS PRESENTATION 30 JUNE 2016 26 AUGUST 2016
HIGHLIGHTS SIGNIFICANT STEPS TOWARDS OUR VISION Strong progress across all priority areas. The $13.6 million refurbishment and refreshment program was completed during the period on time and on budget. The restructure of the leadership team continued with additional senior hires in gaming and security/surveillance bringing new depths of talent and experience to the operation. Targeted marketing programs attracted players to the casino during the refurbishment phase and new programs to attract VIP players and other market segments are being rolled out. The new food and beverage facilities offer both casino and non-gaming guests an inviting atmosphere with an exciting choice of modern Australian cuisine, with French, American and Asian influences throughout the menu. Operational performance continues to improve with a strong focus on customer service standards and business efficiencies. The detailed business case for the redevelopment of Casino Canberra into an integrated entertainment precinct was lodged with the ACT Government during the period.
OVERVIEW HY2016 RESULTS Actual revenue and other income for the half year of $10.7 million (normalised revenue * and other income of $10.8 million) was 18.0% higher than the result for the previous corresponding period (pcp). Result was achieved with the casino operating from temporary facilities with just 16 tables and minimal food and beverage service from February to early June 2016. Actual EBITDA loss of $3.6 million resulted from increased marketing during the refurbishment period. Normalised EDITDA loss of 3.5 million. Statutory loss of $3.93 million (normalised loss of $3.87 million). *Long-term average win rate. AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION
AQUIS ENTERTAINMENT LIMITED GROUP RESULT ACTUAL NORMALISED GROUP EBITDA (3,638,070) (3,549,611) DEPRECIATION AND AMORTISATION (262,830) (262,830) GROUP EBIT (3,900,900) (3,812,441) INTEREST (626,575) (626,575) INCOME TAX CREDIT 590,783 564,245 NET LOSS (3,936,692) (3,874,771) ( ) = Loss.
OVERVIEW KEY DRIVERS CASINO CANBERRA Actual gross gaming revenue of $10.8 million up 18.5% versus pcp (normalised gross gaming revenue of 11.0 m up 15.0% versus pcp). Gaming revenue growth achieved in spite of operating out of significantly smaller temporary facilities resulting in visitation down 18.0% versus pcp, demonstrating that improved marketing strategies are successfully attracting quality players from the VIP market. Normalised Gross Gaming Revenue ($m) Visitation 12 10 8 9.56 10.99 120,000 100,000 80,000 101,868 83,524 6 60,000 4 40,000 2 20,000 0 0 HY2015 HY2016 HY2015 HY2016
CASINO CANBERRA RESULTS ACTUAL NORMALISED GROSS GAMING REVENUE 10,756,120 10,986,834 NON GAMING REVENUE 867,450 867,450 GAMING AND RELATED TAXES (2,117,890) (2,164,033) OPERATING EXPENSES (11,230,805) (11,230,805) EBITDA (1,725,125) (1,540,554) DEPRECIATION AND AMORTISATION (262,830) (262,830) EBIT (1,987,955) (1,803,384)
BUILDING A WINNING TEAM NEW APPOINTMENTS Peter Day Director of Security, Surveillance & Maintenance Peter Day has over 15 years experience in casino security, surveillance and maintenance management. He has held senior positions at both Wrest Point Hotel Casino in Tasmania, and Crown Melbourne, including Executive Manager of Security, Surveillance & Property. Peter was trained in the area of casino game protection in Las Vegas by some of the industry s most respected professionals, and holds a number of highly regarded qualifications in the areas of security risk management, investigation and fraud. Peter also has significant experience in managing security operations for highly publicised international events such as the S-11 World Trade Conference, as well as facility and property management. Kirsten Wagener Vice President of Table Games Kirsten Wagener joined the team in July as Vice-President of Table Games and is an expert in her field. Kirsten has more than 22 years of gaming industry experience with specific skills in strategy, planning, building professional teams and in maximizing operational efficiency. Kirsten started her career in gaming at Crown Melbourne, before moving to Asia in 2004, where she has been in Macau and Singapore in gaming leadership roles, starting with the launch of the original Sands Macau. In Kirsten s most recent role as Assistant Vice President of Gaming with Galaxy Macau, she was responsible for developing programs for the mass segment of the market as well directing the operation of more than 4000 staff members and 320 table games. FURTHER STRENGTHEN OUR LEADERSHIP
CASINO CANBERRA PROPERTY UPDATE
EQUIPMENT REPLACEMENT AND REFURBISHMENT PROGRAM Casino Canberra refurbishment and equipment replacement works were completed on time and on budget. Refurbished facility opened June 9, 2016. The refurbished facility includes: - Upgraded existing VIP gaming facilities - New private VIP gaming room - Main gaming floor refresh including replacement of all furniture and gaming equipment - Upgraded restaurant and bar, featuring new private dining room - Enhanced external arrival experience and lighting - Installation of LT electronic table game terminals - Security upgrades Visitation since reopening, up approx. 25% on pcp.
CASINO CANBERRA REDEVELOPMENT PROPOSAL Aquis Entertainment lodged a detailed business case with the ACT Government on 17 June 2016, progressing the bid for development of a world-class integrated entertainment precinct in the heart of Canberra s CBD. The refined bid proposes a $307 million redevelopment to transform the current Casino Canberra and surrounding area into a comprehensive first-tier leisure and nightlife precinct. Plans include complete modernisation and upscaling of the casino, as well as building a critical mass of world-class restaurants, bars, retail boutiques, accommodation and entertainment options across City Walk in Canberra s CBD. If approved, the new precinct could attract up to 617,000 new patrons per annum, shifting from a predominantly local catchment casino today, to one patronised more heavily by interstate and international tourists. This increase in economic activity will support the net creation of up to 268 full-time regional jobs at peak construction and up to 338 full-time jobs once fully operational. The proposal remains subject to further discussions with the ACT Government, financing and regulatory approvals.