John Redmond had only just assumed the role of CEO at Echo Entertainment, and he is now quitting after one year of heading the casino operator. The announcement of his retirement comes shortly after Echo Entertainment posted a 30% loss over the course of the past year. The aspect of gaming upon which the company relied has ultimately hurt Echo Entertainment.
The casino operator chose to focus more on its high roller gambling operations, as VIP players spend much more money on poker machines and table games. However, high roller players at The Star casino experience a higher-than-average win rate in 2013, causing the casino to lose significant profits. As such, the last year saw Echo Entertainment’s net profits fall by 30.5% to $46.1 million.
Revenue at The Star casino feel by 6.5% to $90 million while profits at Jupiters Gold Coast and Treasury Brisbane fell 30% to $34 million. The company’s stocks have also dropped significantly, with investors losing 39%. This week, Echo Entertainment’s share price was the lowest it has ever been at $2.27. Redmond will be replaced by Matt Bekier, Echo Entertainment’s current chief financial officer.
It is hoped that he will be able to steer company in the right direction. The next few years will be crucial for the casino operator, as Echo has lost its monopoly on Sydney’s gambling market. In 2019, Crown Limited will open up a high roller casino resort, which will present steep competition for the struggling Echo Entertainment.
“Matt [Bekier] knows the company and the Australian market exceptionally well and has been working closely with John in re-establishing a path towards profitable growth,” says John O’Neill, chairperson for Echo Entertainment. “The board is confident that Matt is the right person to lead the group forward on the foundations that have been built”.
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