As much as AUD300 million will be spent by the Echo Entertainment Group Ltd, a casino operate in Australia, to upgrade two of their properties which includes gambling facilities as well as hotel accommodations. The upgrades will be completed in fiscal 2016 after the revenues of the properties increased significantly from foreign players, including those from Asia.
The company released the fiscal 2015 reports which show that Echo Entertainment was able to earn a net profit of AUD169 million in a twelve month time frame after taxes. The gross revenues were AUD2.26 billion which is a 19% increase from the fiscal 2014 reports. Total dividends are up 38% when considered year-on-year at AUD0.11 per share.
The Managing Director and Chief Executive of Echo Entertainment, Matt Bekier, stated that the increased number of Asian tourists, especially from China, has the potential to be the ‘next mining boom’ of the area.
According to Bekier, Echo will be investing AUD500 million in the Sydney property, The Star over a five year time frame. This will include as much as AUD150 million to AUD175 million in 2016 fiscal year. The upgrades will also be included at the Darling VIP salons of the company.
The Queensland property, Jupiters Gold Coast, will begin a redevelopment phase which will have a price tag of AUG345 million during the first phase. A capital expenditure estimated at AUD100 million to AUD125 million is believed to be completed in 2016 fiscal year as well which will include new VIP hotel suites and gaming salons at the property.