Tasmanian tourism and gambling operator, Federal Group, suffered a significant drop in after-tax profit because of the coronavirus pandemic which stopped tourists and halted gambling for nearly four months of the 2019-20 financial year.
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The latest financial report shows parent company Mulawa Holdings recorded a fall in after-tax profit from $17.6 million to $6 million.
The profit came despite reduced revenue of $464 million compared with $529 million the year before.
In other news:
Federal Group, which owns two casinos, gaming networks and hotels faces legislation which will end its monopoly on owning poker machine licences from 2023.
Tasmania's largest private-sector employer received $20 million from the federal government's JobKeeper scheme enabling it to retain 2469 employees.
In March, the company announced plans to lay off 1500 staff but reversed the decision when JobKepper was announced.
Tasmanian financial analyst John Lawrence said: "It's an unbelievably good result in the circumstances and a tribute to how JobKeeper was an absolute saviour."
The closure of the poker machines in March, April, May and June and the tourism restrictions led to a 17 per cent drop from $392 million to $324 million in revenue. That fall was offset somewhat by a $13 million reduction to $41 million in gaming taxes and licence fees.
The report included comment on the impact of the pandemic on the company's operations.
"During the 2020 financial year a number of government restrictions were imposed as a result of COVID-19," it said.
"A significant portion of the group's businesses were closed from late March to late June resulting in a material decrease in the operating turnover of the group.
"The ongoing border closures and measures that the group have put in place to meet CCOVID-safe requirements continues to have some impact on the group.
"The group was eligible for the JobKeeper scheme for the period from April to September 2020."
Federal Group announced plans in May for a 380-lot residential subdivision near the Country Club Resort in Blackstone Heights.
Lower tax, $3.3 million compared with $8.7 million, helped the after-tax profit figure of $6 million albeit significantly lower than $17.6 million the year before.
The company had increased lease payments in 2020, believed to include the flagship accommodation venues Mac01 and the Henry Jones Art Hotel, totalling $32.5 million compared with $13 million the year before.
Federal has benefited from a 23 per cent increase to $55 million in poker machine revenue in the first three months of the 2020-21 year.
Nick Clark
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
