================================================================================
================================================================================
11 February 2002
File ref: 67 SX-07.2
Securities and Exchange Commission
450 Fifth Street N.W.
Washington D.C. 20549
UNITED STATES OF AMERICA
Attention: Filing Desk
JUPITERS LIMITED
REGISTRATION NO. 333-10374
Ladies and Gentlemen,
Enclosed are eight copies of the Form 6-K covering an announcement made to the
Australian Stock Exchange Limited regarding Jupiters Limited's Half Yearly
Report 31 December 2001.
Yours faithfully
L.M. CARSLEY
CHIEF FINANCIAL OFFICER
Enc.
cc: Global Finance Unit
The Bank of New York
Corporate Trust Administration
Floor 21 West
101 Barclay Street
New York, New York 10286
UNITED STATES OF AMERICA
================================================================================
FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
_____________
For the month of February 2002
_____________
JUPITERS LIMITED
ACN 010 741 045
9th Floor, Niecon Tower
17 Victoria Avenue
Broadbeach Queensland 4218
Australia
(Address of registrant's principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F of Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with
Rule 12g3-2(b): ______________.
================================================================================
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorised.
JUPITERS LIMITED
(Registrant)
Date: 11 February 2002 By: _________________________
Name: Laurence M. Carsley
Title: Chief Financial Officer
================================================================================
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11 February 2002
File ref: 67 SX-02
The Manager
Company Announcements Office
The Australian Stock Exchange Limited
Level 10, 20 Bond Street
SYDNEY NSW 2000
Dear Sir
HALF YEARLY REPORT
31 DECEMBER 2001
CHAIRMAN'S LETTER
RESULTS AND DIVIDENDS
Directors report a net profit for the six months ended 31 December 2001 of $36.2
million, a decrease of $6.2 million or 14.6% on the $42.4 million for the
previous corresponding period ("pcp"). Impacting this result is a provision of
$10.0 million that has been raised against the possibility of an unfavourable
outcome of a court appeal concerning the tax deductibility of certain rentals
paid in connection with the lease of the Brisbane hotel/casino complex. Also, an
above theoretical win rate on commission premium play business provided
approximately $2.7 million in additional after tax earnings (pcp $9 million).
However excluding the effects of these two individually significant items,
underlying net profit for the six months ended 31 December 2001 was $43.5
million, an increase of $10.1 million or 30.2% on the $33.4 million for the pcp
(ie. Normalised Basis).
The reduction in the company tax rate impacted the result positively by $2.8
million (Normalised Basis: $2.6 million).
Revenues increased $13.3 million to $405.7 million but EBITDA was slightly lower
at $105.7 million (pcp $106.8 million), although on a Normalised Basis, EBITDA
increased by $8.7 million or 9.3%. Earnings per share were 15.0 cents (pcp 17.6
cents). On a Normalised Basis, earnings per share for the six months ended 31
December 2001 were 18.0 cents, an increase of 4.2 cents over the pcp.
The Directors have declared an interim fully franked dividend of 10 cents per
share representing an increase of 1 cent per share over the pcp.
================================================================================
OPERATIONS
The major cash generating assets of the hotel/casinos continued to perform well
in the face of a highly competitive environment and a tourism industry impacted
by the collapse of Ansett Airlines and the terrorist attacks in the USA.
Commission play again contributed additional after tax earnings due to above
theoretical win rates. The Company's new Club Conrad facility opened on the Gold
Coast in September 2001. This new facility has set a standard of excellence in
the Australian premium player market and is stimulating further growth in this
segment of the Company's business.
Revenues from our other divisions grew to $95.6 million, or 23.6% of the
Company's operating revenues. The continued strong growth of our on-line sports
betting operation, Centrebet, contributed revenue of $11.8 million, an increase
of 48% over the pcp and an EBITDA of $6.3 million, an increase of 50% over the
pcp. Centrebet turnover in the period was $179.6 million, an increase of 63%
over the pcp.
Revenue from our Keno operations grew to $49.7 million, an increase of 20% over
the pcp. Our gaming machine monitoring operations in Queensland are cash
positive and generated revenue of $8.2 million, an increase of 18% over the pcp.
AWA Technology Services revenue was $20.0 million, an increase of 24% over the
pcp.
OUTLOOK
The difficulties faced by tourism operators in the Australian market since
September 11 have been offset to some degree by a very successful domestic
holiday season in South East Queensland. With the end of this domestic season
the industry moves to a reliance on international visitors in the period from
February 2002 to June 2002. Forward hotel and convention bookings for this
period are down significantly compared to the same period last year, however, we
are pleased to report that forward bookings beyond June 2002 are showing a
strong positive trend.
Construction commenced on the site of the Gold Coast Convention and Exhibition
Centre today, Monday, 11 February 2002. Completion is scheduled for mid 2004 and
as previously reported we are holding a number of reservations for conventions
and exhibitions scheduled for the second half of that year.
We continue to explore opportunities in international markets and are pleased to
report that our trial of Keno in the UK is progressing well. Although initially
intended to last for three months the trial has been extended for a further
period to allow for some modification to the marketing and promotion of the
product.
The strong growth profile for Centrebet is expected to continue with initiatives
underway to improve the speed and functionality of our web site and to increase
geographical coverage. The soccer world cup scheduled for June 2002 is expected
to generate significant additional turnover.
================================================================================
The Board and Management of Jupiters Limited remain confident of delivering
double-digit net profit growth, on a Normalised Basis, in the financial year to
30 June 2002.
Yours faithfully
L.J. WILLETT AO
CHAIRMAN OF THE BOARD
For further information contact:
Mr Rob Hines, Managing Director & Chief Executive Officer
Phone: (07) 5584 8900
Enc: Appendix 4B
Management's Discussion and Analysis
================================================================================
================================================================================
APPENDIX 4B
HALF YEARLY REPORT Rules 4.1, 4.3
Introduced 1/1/2002.
Name of entity
JUPITERS LIMITED
ACN Half Preliminary Half year ended
yearly (tick) final (tick) ('current period')
010 741 045 X 31 DECEMBER 2001
FOR ANNOUNCEMENT TO THE MARKET
Extracts from this report for announcement to the market (see note 1).
- --------------------------------------------------------------------------------
$A'000
Revenues from ordinary up 2.9% to 407,142
activities (item 1.1)
Profit from ordinary down 13.4% to 40,159
activities after tax
(before amortisation
of goodwill) attributable
to members (item 1.20)
Profit from ordinary down 14.7% to 36,186
activities after tax
attributable to members
(item 1.23)
Profit from extraordinary gain (loss)
items after tax of - -
attributable to members
(item 2.5(d))
Net profit for the down 14.7% to 36,186
period attributable
to members (item 1.11)
- --------------------------------------------------------------------------------
Franked amount
Amount per per security
DIVIDENDS (DISTRIBUTIONS) security at 30% (pcp:34%)
- --------------------------------------------------------------------------------
Interim dividend
(Half yearly report only - item 15.6) 10.0 10.0
- --------------------------------------------------------------------------------
Previous corresponding period
(half yearly report - item 15.7) 9.0 9.0
- --------------------------------------------------------------------------------
Record date for determining
entitlements to the dividend,
(in the case of a trust, distribution)
(see item 15.2) 25 FEBRUARY 2002
Brief explanation of any of the figures reported above (see Note 1) and short
details of any bonus or cash issue or other item(s) of importance not previously
released to the market:
Net profit is impacted by a provision of $10.0 million that has been raised
against the possibility of an unfavourable outcome of a court appeal concerning
the tax deductibility of certain rentals paid in connection with the lease of
the Brisbane hotel/casino complex. Also, an above theoretical win rate on
commission premium play business provided approximately $2.7 million in
additional after tax earnings (pcp $9 million). However, excluding the effects
of these two individually significant items, underlying net profit for the six
months ended 31 December 2001 was $43.5 million, an increase of $10.1 million or
30.2% on the $33.4 million for the pcp.
+ See chapter 19 for defined terms.
================================================================================
--------------------------------------------
CONSOLIDATED PROFIT 31/12/01 31/12/00
AND LOSS ACCOUNT Current period Previous Corresponding
- $A'000 period - $A'000
--------------------------------------------
1.1 Revenues from
ordinary activities
(see items 1.24 -1.26) 407,142 395,771
1.2 Expenses from
ordinary activities
(see items 1.27 -1.31) (326,620) (312,719)
1.3 Borrowing costs (11,634) (13,709)
1.4 Share of net profits
(losses) of associates
and joint venture
entities (see item 16.7) - -
- --------------------------------------------------------------------------------
1.5 PROFIT FROM ORDINARY
ACTIVITIES BEFORE TAX 68,888 69,343
1.6 Income tax on ordinary
activities (see note 4)* (31,939) (25,722)
- --------------------------------------------------------------------------------
1.7 PROFIT FROM ORDINARY
ACTIVITIES AFTER TAX 36,949 43,621
1.8 Profit (loss) from
extraordinary items
after tax (see item 2.5) - -
- --------------------------------------------------------------------------------
1.9 NET PROFIT 36,949 43,621
1.10 Net profit attributable
to outside equity interests (763) (1,203)
- --------------------------------------------------------------------------------
1.11 NET PROFIT FOR THE
PERIOD ATTRIBUTABLE
TO MEMBERS 36,186 42,418
- --------------------------------------------------------------------------------
--------------------------------------------
CONSOLIDATED 31/12/01 31/12/00
RETAINED PROFITS Current period Previous Corresponding
- $A'000 period - $A'000
--------------------------------------------
1.12 Retained profits at
the beginning of the
financial period 123,881 94,299
1.13 Net profit attributable
to members (item 1.11) 36,186 42,418
1.14 Net transfers from (to)
reserves (see item 1.35) - -
1.15 Net effect of changes
in accounting policies - -
1.16 Dividends and other
equity distributions
paid or payable (23,984) (21,722)
- --------------------------------------------------------------------------------
1.17 RETAINED PROFITS AT
END OF FINANCIAL PERIOD 136,083 114,995
- --------------------------------------------------------------------------------
* The effective tax rate for the six months ended 31 December 2001
approximated the corporate tax rate of 30% (2000: 34%) after allowing for
the amortisation of goodwill and a provision for income tax expense of
$10 million (2000: nil) in respect of a potential adverse outcome of an
appeal to the Full Federal Court of Australia concerning the tax
deductibility of certain rentals paid in connection with the lease of the
Brisbane hotel/casino complex.
+ See chapter 19 for defined terms.
================================================================================
31/12/01 31/12/00
-----------------------------------------
PROFIT RESTATED TO EXCLUDE Current period Previous
AMORTISATION OF GOODWILL corresponding
- $A'000 period - $A'000
-----------------------------------------
1.18 Profit from ordinary
activities after tax
before outside equity
interests (item 1.7) and
amortisation of goodwill 40,922 47,559
1.19 Less outside + equity
interests (763) (1,203)
-----------------------------------------
1.20 PROFIT FROM ORDINARY ACTIVITIES
AFTER TAX (BEFORE AMORTISATION
OF GOODWILL) ATTRIBUTABLE TO
MEMBERS 40,159 46,356
- --------------------------------------------------------------------------------
PROFIT FROM ORDINARY ACTIVITIES ATTRIBUTABLE TO MEMBERS
31/12/01 31/12/00
-----------------------------------------
Current period Previous
corresponding
- $A'000 period - $A'000
-----------------------------------------
1.21 Profit from ordinary
activities after tax
(item 1.7) 36,949 43,621
1.22 Less outside +equity
interests (763) (1,203)
- --------------------------------------------------------------------------------
1.23 PROFIT FROM ORDINARY
ACTIVITIES AFTER TAX,
ATTRIBUTABLE TO MEMBERS 36,186 42,418
- --------------------------------------------------------------------------------
REVENUE AND EXPENSES FROM ORDINARY ACTIVITIES
(see note 15)
31/12/01 31/12/00
-----------------------------------------
Current period Previous
corresponding
- $A'000 period - $A'000
-----------------------------------------
1.24 Details of revenue and
expenses
Operating revenues:
Casino 246,364 250,194
Hotel 63,665 62,733
Other gaming and wagering 69,740 56,504
Gaming equip. sales and tech.
services 24,578 21,593
-----------------------------------------
404,347 391,024
Other revenues:
1.25 Interest from other persons 1,435 3,316
Proceeds from sale of property,
plant and equipment 39 225
1.26 Other 1,321 1,206
-----------------------------------------
2,795 4,747
-----------------------------------------
Revenue from ordinary activities 407,142 395,771
=========================================
1.27-1.31
Expenses:
Employee related expenses (115,784) (111,616)
Government gaming
taxes/community
benefit contribution (54,804) (54,827)
Marketing expenses (46,459) (38,618)
Cost of goods sold (14,223) (14,087)
Depreciation and amortisation
expense (26,626) (27,056)
Management fee (10,309) (10,844)
Property operations and energy
costs (10,749) (10,195)
Keno commissions (11,792) (10,786)
Other expenses from ordinary
activities (35,874) (34,690)
-----------------------------------------
Expenses from ordinary
activities (326,620) (312,719)
=========================================
+ See chapter 19 for defined terms.
================================================================================
TRANSFERS FROM AND TO RESERVES
31/12/01 31/12/00
-----------------------------------------
Current period Previous
corresponding
- $A'000 period - $A'000
-----------------------------------------
1.32 Increase (decrease) in asset
revaluation reserve recognized
in equity for the period
1.33 Net exchange difference on
translation
1.34 Other reserves (provide details
if material) N/A N/A
-----------------------------------------
1.35 Total Net Transfer from (to)
reserves (see item 1.14)
- --------------------------------------------------------------------------------
INTANGIBLE AND EXTRAORDINARY ITEMS
-----------------------------------------------------
Consolidated - current period
-----------------------------------------------------
Before tax Related tax Related Amount
$A'000 $A'000 outside (after tax)
+equity attributable
interests to members
$A'000 $A'000
(a) (b) (c) (d)
-----------------------------------------------------
2.1 Amortisation of
goodwill 3,973 - - 3,973
2.2 Amortisation of
other intangibles 264 - - 264
-----------------------------------------------------
2.3 TOTAL AMORTISATION
OF INTANGIBLES 4,237 - - 4,237
- --------------------------------------------------------------------------------
2.4 Extraordinary items
(details) - - - -
-----------------------------------------------------
2.5 TOTAL EXTRAORDINARY
ITEMS - - - -
- --------------------------------------------------------------------------------
COMPARISON OF HALF YEAR PROFITS
(Preliminary final report only)
31/12/01 31/12/00
-----------------------------------------
Current year Previous year
- $A'000 $A'000
-----------------------------------------
3.1 Consolidated profit (loss)
from ordinary activities after
tax attributable to members
reported for the 1st half year
(item 1.23 in the half yearly
report) n/a n/a
-----------------------------------------
3.2 Consolidated profit (loss)
from ordinary activities after
tax attributable to members
for the 2nd half year n/a n/a
-----------------------------------------
+ See chapter 19 for defined terms.
================================================================================
31/12/01 30/6/01 31/12/00
----------------------------------------
CONSOLIDATED BALANCE SHEET At end of As shown As in last
current in last half yearly
period annual report
$A'000 report $A'000
$A'000
----------------------------------------
CURRENT ASSETS
4.1 Cash 90,829 116,742 129,958
4.2 Receivables 43,835 30,386 33,959
4.3 Investments - - -
4.4 Inventories 15,919 13,339 15,309
4.5 Tax assets - - -
4.6 Other - prepayments 10,862 11,061 10,433
----------------------------------------
4.7 TOTAL CURRENT ASSETS 161,445 171,528 189,659
- --------------------------------------------------------------------------------
NON-CURRENT ASSETS
4.8 Receivables * 50,241 - -
4.9 Investments (equity accounted) - - -
4.10 Other investments - - -
4.11 Inventories - - -
Exploration and evaluation
expenditure capitalised
(see para .71 of AASB 1022) - - -
4.13 Development properties
(+mining entities) - - -
4.14 Other property, plant and
equipment (net) 786,062 790,483 786,553
4.15 Intangibles (net) 108,157 112,132 116,045
4.16 Tax assets - - -
4.17 Other - management contracts,
deferred borrowing costs 15,039 15,856 16,659
----------------------------------------
4.18 TOTAL NON-CURRENT ASSETS 959,499 918,471 919,257
- --------------------------------------------------------------------------------
4.19 TOTAL ASSETS 1,120,944 1,089,999 1,108,916
- --------------------------------------------------------------------------------
CURRENT LIABILITIES
4.20 Payables 105,633 80,277 85,513
4.21 Interest bearing liabilities 1,768 1,606 7,660
4.22 Tax liabilities 17,626 27,131 24,961
4.23 Provisions 49,440 44,039 38,568
4.24 Other (provide details
if material) - - -
----------------------------------------
4.25 TOTAL CURRENT LIABILITIES 174,467 153,053 156,702
- --------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
4.26 Payables - - -
4.27 Interest bearing liabilities * 286,637 289,203 313,966
4.28 Tax liabilities 16,109 17,157 17,670
4.29 Provisions 10,123 9,942 9,538
4.30 Other (provide details if material) - - -
----------------------------------------
4.31 TOTAL NON-CURRENT LIABILITIES 312,869 316,302 341,174
- --------------------------------------------------------------------------------
4.32 TOTAL LIABILITIES 487,336 469,355 497,876
- --------------------------------------------------------------------------------
4.33 NET ASSETS 633,608 620,644 611,040
- --------------------------------------------------------------------------------
* See item 19.5 regarding change in presentation of Interest Bearing
Liabilities.
+ See chapter 19 for defined terms.
================================================================================
CONSOLIDATED BALANCE SHEET CONTINUED
31/12/01 30/6/01 31/12/00
----------------------------------------
EQUITY
4.34 Capital/contributed equity 466,125 466,125 466,125
4.35 Reserves - - -
4.36 Retained profits 136,083 123,881 114,995
- --------------------------------------------------------------------------------
4.37 EQUITY ATTRIBUTABLE TO MEMBERS
OF THE PARENT ENTITY 602,208 590,006 581,120
4.38 Outside +equity interests
in controlled entities 31,400 30,638 29,920
----------------------------------------
4.39 TOTAL EQUITY 633,608 620,644 611,040
- --------------------------------------------------------------------------------
----------------------------------------
4.40 Preference capital included
as part of 4.37 - - -
- --------------------------------------------------------------------------------
EXPLORATION AND EVALUATION EXPENDITURE CAPITALISED
To be completed only by entities with mining interests if amounts are material.
Include all expenditure incurred regardless of whether written off directly
against profit.
31/12/01 31/12/00
-----------------------------------------
Current period Previous
corresponding
- $A'000 period - $A'000
-----------------------------------------
5.1 Opening balance
5.2 Expenditure incurred during
current period
5.3 Expenditure written off during
current period
5.4 Acquisitions, disposals,
revaluation increments, etc. N/A N/A
5.5 Expenditure transferred to
Development Properties
-----------------------------------------
5.6 CLOSING BALANCE AS SHOWN IN THE
CONSOLIDATED BALANCE SHEET
(item 4.12)
- --------------------------------------------------------------------------------
DEVELOPMENT PROPERTIES
(To be completed only by entities with mining interests if amounts are material)
31/12/01 31/12/00
-----------------------------------------
Current period Previous
corresponding
- $A'000 period - $A'000
-----------------------------------------
6.1 Opening balance
6.2 Expenditure incurred during
current period
6.3 Expenditure transferred from
exploration and evaluation
6.4 Expenditure written off during
current period N/A N/A
6.5 Acquisitions, disposals,
revaluation increments, etc.
6.6 Expenditure transferred to mine
properties
-----------------------------------------
6.7 CLOSING BALANCE AS SHOWN IN
THE CONSOLIDATED BALANCE
SHEET (item 4.13)
-----------------------------------------
+ See chapter 19 for defined terms.
================================================================================
CONSOLIDATED STATEMENT OF CASH FLOWS
31/12/01 31/12/00
-----------------------------------------
Current period Previous
corresponding
- $A'000 period - $A'000
-----------------------------------------
CASH FLOWS RELATED TO OPERATING
ACTIVITIES
7.1 Receipts from customers 393,185 362,289
7.2 Payments to suppliers and
employees (280,906) (267,711)
7.3 Dividends received from
associates - -
7.4 Other dividends received - -
7.5 Interest and other items of
similar nature received 1,677 3,350
7.6 Interest and other costs of
finance paid (11,003) (13,267)
7.7 Income taxes paid (32,492) (30,135)
7.8 Other (provide details if
material) - -
-----------------------------------------
7.9 NET OPERATING CASH FLOWS 70,461 54,526
- --------------------------------------------------------------------------------
CASH FLOWS RELATED TO INVESTING
ACTIVITIES
7.10 Payment for purchases of
property, plant and equipment (17,404) (17,427)
7.11 Proceeds from sale of property,
plant and equipment 39 226
7.12 Payment for purchases of
businesses (2,000) (5,719)
7.13 Proceeds from sale of equity
investments - -
7.14 Loans to other entities - -
7.15 Loans repaid by other entities - -
7.16 Other (provide details if
material) - -
-----------------------------------------
7.17 NET INVESTING CASH FLOWS (19,365) (22,920)
- --------------------------------------------------------------------------------
CASH FLOWS RELATED TO FINANCING
ACTIVITIES
7.18 Proceeds from issues of
+securities (shares, options
, etc.) - -
7.19 Proceeds from borrowings 40,000 -
7.20 Repayment of borrowings (91,337) (959)
7.21 Dividends paid (25,672) (23,635)
7.22 Other (provide details if
material) - -
-----------------------------------------
7.23 NET FINANCING CASH FLOWS (77,009) (24,594)
- --------------------------------------------------------------------------------
7.24 NET INCREASE (DECREASE) IN
CASH HELD (25,913) 7,012
7.25 Cash at beginning of period
(see Reconciliation of cash) 116,742 122,946
7.26 Exchange rate adjustments to
item 7.25. - -
-----------------------------------------
7.27 CASH AT END OF PERIOD
(see Reconciliation of cash) 90,829 129,958
-----------------------------------------
+ See chapter 19 for defined terms.
================================================================================
NON-CASH FINANCING AND INVESTING ACTIVITIES Details of financing and investing
transactions which have had a material effect on consolidated assets and
liabilities but did not involve cash flows are as follows. If an amount is
quantified, show comparative amount.
- --------------------------------------------------------------------------------
NIL
- --------------------------------------------------------------------------------
RECONCILIATION OF CASH
31/12/01 31/12/00
-----------------------------------------
Reconciliation of cash at the end Current period Previous
of the period (as shown in the corresponding
consolidated statement of cash - $A'000 period - $A'000
flows) to the related items in the
accounts is as follows.
- --------------------------------------------------------------------------------
8.1 Cash on hand and at bank 85,829 90,544
8.2 Deposits at call - -
8.3 Bank overdraft - -
8.4 Other - bank accepted bills 5,000 39,414
-----------------------------------------
8.5 TOTAL CASH AT END OF PERIOD
(item 7.27) 90,829 129,958
- --------------------------------------------------------------------------------
6mths to 6mths to
31/12/01 31/12/00
-----------------------------------------
Current period Previous
RATIOS corresponding
period
- --------------------------------------------------------------------------------
9.1 PROFIT BEFORE TAX / REVENUE
Consolidated profit from
ordinary activities before
tax (item 1.5) as a percentage
of revenue (item 1.1) 16.9% 17.5%
- --------------------------------------------------------------------------------
9.2 PROFIT AFTER TAX / +EQUITY
INTERESTS
Consolidated net profit from
ordinary activities after tax
attributable to members
(item 1.11) as a percentage
of equity (similarly
attributable) at the end of
the period (item 4.37) 6.0% 7.3%
- --------------------------------------------------------------------------------
6mths to 6mths to
31/12/01 31/12/00
-----------------------------------------
Current period Previous
EARNINGS PER SECURITY (EPS) corresponding
period
- --------------------------------------------------------------------------------
10.1 Calculation of the following
in accordance with
AASB 1027: Earnings per Share
(a) Basic EPS 15.0 cents 17.6 cents
(b) Diluted EPS (if materially
different from (a)) 15.0 cents 17.6 cents
(c) Weighted average number
of ordinary shares
outstanding during the
period used in the
calculation of the
Basic EPS 241,357,429 241,357,429
- --------------------------------------------------------------------------------
31/12/01 31/12/00
-----------------------------------------
Current period Previous
NTA BACKING corresponding
(see note 7) period
- --------------------------------------------------------------------------------
11.1 Net tangible asset backing per
+ordinary security 218 cents 205 cents
-----------------------------------------
+ See chapter 19 for defined terms.
================================================================================
DISCONTINUING OPERATIONS - N/A
Entities must report a description of any significant activities or events
relating to discontinuing operations in accordance with paragraph 7.5 (g) of
AASB 1029: Interim Financial Reporting, or, the details of discontinuing
operations they have disclosed in their accounts in accordance with AASB 1042:
Discontinuing Operations (see note 17).
12.1 Discontinuing Operations
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONTROL GAINED OVER ENTITIES HAVING MATERIAL EFFECT - N/A
13.1 Name of entity (or group of entities)
13.2 Consolidated profit (loss) from ordinary
activities and extraordinary items after
tax of the entity (or group of entities)
since the date in the current period on
which control was +acquired $
13.3 Date from which such profit has been
calculated
13.4 Profit (loss) from ordinary activities
and extraordinary items after tax of the
entity (or group of entities) for the
whole of the previous corresponding
period $
LOSS OF CONTROL OF ENTITIES HAVING MATERIAL EFFECT - N/A
14.1 Name of entity (or group of entities)
14.2 Consolidated profit (loss) from ordinary
activities and extraordinary items after
tax of the entity (or group of entities)
for the current period to the date of
loss of control $
14.3 Date to which the profit (loss) in item
14.2 has been calculated
14.4 Consolidated profit (loss) from ordinary
activities and extraordinary items after
tax of the entity (or group of entities)
while controlled during the whole of the
previous corresponding period $
14.5 Contribution to consolidated profit (loss)
from ordinary activities and extraordinary
items from sale of interest leading to loss
of control $
+ See chapter 19 for defined terms.
================================================================================
DIVIDENDS (IN THE CASE OF A TRUST, DISTRIBUTIONS)
---------------------------
15.1 Date the dividend (distribution) is payable 11 March 2002
---------------------------
15.2 +Record date to determine entitlements to ---------------------------
the dividend (distribution) (ie, on the
basis of registrable transfers received by
5.00 pm if +securities are not +CHESS
approved, or security holding balances
established by 5.00 pm or such later time
permitted by SCH Business Rules if 25 February 2002
+securities are +CHESS approved) ---------------------------
15.3 If it is a final dividend, has it been ---------------------------
declared? N/A - Interim Dividend
(Preliminary final report only) ---------------------------
AMOUNT PER SECURITY
----------------------------------------------
Amount per Franked amount Amount per
security per security security of
at 30% tax foreign source
(pcp:34%) dividend
(see note 4)
- --------------------------------------------------------------------------------
(Preliminary final report only)
15.4 FINAL DIVIDEND:
Current year n/a n/a n/a
15.5 Previous year n/a n/a n/a
- --------------------------------------------------------------------------------
(Half yearly and preliminary
final reports)
15.6 INTERIM DIVIDEND:
Current year 10 c 10 c - c
15.7 Previous year 9 c 9 c - c
- --------------------------------------------------------------------------------
TOTAL DIVIDEND (DISTRIBUTION) PER SECURITY (INTERIM PLUS FINAL)
(Preliminary final report only)
------------ --------------
Current year Previous year
------------ --------------
15.8 +Ordinary securities - c - c
15.9 Preference +securities - c - c
------------ --------------
+ See chapter 19 for defined terms.
================================================================================
HALF YEARLY REPORT - INTERIM DIVIDEND (DISTRIBUTION) ON ALL SECURITIES
-----------------------------------------
Current period Previous
corresponding
- $A'000 period - $A'000
-----------------------------------------
15.10 +Ordinary securities
(Interim 2001: 10 cents
(2000: 9 cents)) 24,136 21,722
15.11 Preference +securities - -
15.12 Other equity instruments - -
-----------------------------------------
15.13 TOTAL 24,136 21,722
-----------------------------------------
The +dividend or distribution plans shown below are in operation.
- --------------------------------------------------------------------------------
Nil
- --------------------------------------------------------------------------------
The last date(s) for receipt of election notices for the +dividend or
distribution plans
- --------------------------------------------------------------------------------
N/A
- --------------------------------------------------------------------------------
Any other disclosures in relation to dividends (distributions)
- --------------------------------------------------------------------------------
Nil
- --------------------------------------------------------------------------------
DETAILS OF AGGREGATE SHARE OF PROFITS (LOSSES) OF ASSOCIATES AND JOINT VENTURE
ENTITIES - N/A
-----------------------------------------
Current period Previous
GROUP'S SHARE OF ASSOCIATES' AND corresponding
JOINT VENTURE ENTITIES': - $A'000 period - $A'000
-----------------------------------------
16.1 Profit (loss) from ordinary
activities before tax - -
16.2 Income tax on ordinary
activities - -
16.3 PROFIT (LOSS) FROM ORDINARY
ACTIVITIES AFTER TAX - -
16.4 Extraordinary items net of tax - -
16.5 NET PROFIT (LOSS) - -
16.6 Adjustments - -
16.7 SHARE OF NET PROFIT (LOSS)
OF ASSOCIATES AND JOINT
VENTURE ENTITIES - -
- --------------------------------------------------------------------------------
+ See chapter 19 for defined terms.
================================================================================
MATERIAL INTERESTS IN ENTITIES WHICH ARE NOT CONTROLLED ENTITIES - N/A
The economic entity has an interest (that is material to it) in the following
entities. If the interest was acquired or disposed of during either the current
or previous corresponding period, indicate date of acquisition ("from dd/mm/yy")
or disposal ("to dd/mm/yy").
-------------------------- ------------------------
NAME OF ENTITY Percentage of ownership Contribution to net
interest held at end of profit (loss)
period or date of (item 1.9)
disposal
- -------------------------- -------------------------- ------------------------
17.1 EQUITY ACCOUNTED Current Previous Current Previous
ASSOCIATES AND period corresponding period corresponding
JOINT VENTURE period $A'000 period $A'000
ENTITIES --------- --------------- --------- -------------
- -------------------------- --------- --------------- --------- -------------
17.2 TOTAL
- -------------------------- --------- --------------- --------- -------------
17.3 Other material
interests
- -------------------------- --------- --------------- --------- -------------
17.4 TOTAL
- -------------------------- --------- --------------- --------- -------------
+ See chapter 19 for defined terms.
================================================================================
ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
----------- ----------- ------------- --------------
Total Number Issue price Amount
number quoted per security paid up
CATEGORY OF +SECURITIES (see note 14) per security
(cents) (see note 14)
(cents)
----------- ----------- ------------- --------------
18.1 PREFERENCE
+SECURITIES
(description) - - - -
----------- ----------- ------------- --------------
18.2 Changes during
current period
(a) Increases
through
issues
(b) Decreases
through
returns of
capital,
buybacks,
redemptions - - - -
- -------------------------- ----------- ----------- ------------- --------------
18.3 +ORDINARY SECURITIES 241,357,429 241,357,429
----------- ----------- ------------- --------------
18.4 Changes during
current period
(a) Increases
through issues
(b) Decreases
through
returns of
capital,
buybacks - - - -
- -------------------------- ----------- ----------- ------------- --------------
18.5 +CONVERTIBLE DEBT
SECURITIES
(description and
conversion factor) - - - -
----------- ----------- ------------- --------------
18.6 Changes during
current period
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted - - - -
- -------------------------- ----------- ----------- ------------- --------------
Exercise Expiry date
price (if any)
------------- --------------
18.7 OPTIONS
(description and
conversion factor)
Executive Share
Options - - - -
----------- ----------- ------------- --------------
18.8 Issued during
current period
Tranche 1 1,660,000 - $4.54 30 Aug 04
Tranche 2 50,000 - $4.38 5 Nov 04
----------- ----------- ------------- --------------
18.9 Exercised during
current period - - - -
----------- ----------- ------------- --------------
18.10 Expired during
current period 50,000 - - 31 Jan 02
- -------------------------- ----------- ----------- ------------- --------------
18.11 DEBENTURES
(totals only) - -
- -------------------------- ----------- -----------
18.12 UNSECURED NOTES
(totals only) - -
- -------------------------- ----------- -----------
+ See chapter 19 for defined terms.
================================================================================
SEGMENT REPORTING
Information on the business and geographical segments of the entity must be
reported for the current period in accordance with AASB 1005: Segment Reporting
and for half year reports, AASB 1029: Interim Financial Reporting. Because
entities employ different structures a pro forma cannot be provided. Segment
information in the layout employed in the entity's +accounts should be reported
separately and attached to this report.
----------------------- -------------------------
31 December 2001 31 December 2000
----------------------- -------------------------
Segment Segment Segment Segment
Revenue Result Revenue Result
$000 $000 $000 $000
--------- ---------- ---------- -------------
BUSINESS SEGMENTS:
Land based operations 310,029 75,748 312,927 84,210
Wide-area operations 59,549 10,950 51,277 4,894
Technology operations 28,811 650 23,977 1,473
Sportsbetting operations 11,824 4,928 8,043 2,909
Net Interest 1,435 (10,199) 3,315 (10,394)
Unallocated 6,198 (14,137) 6,576 (14,673)
Eliminations (10,704) 948 (10,344) 924
--------- ---------- ---------- -------------
Consolidated 407,142 68,888 395,771 69,343
========= ========== ========== =============
Land based operations includes all hotel/casino related activities.
Wide-area operations includes all keno and gaming machine monitoring activities.
Technology operations includes AWA Technology Services and Jupiters Technology.
Consolidated segment result equates to profit from ordinary activities before
income tax expense.
Goodwill attributable to the acquisition of the AWA group is not allocated.
COMMENTS BY DIRECTORS
Comments on the following matters are required by ASX or, in relation to the
half yearly report, by AASB 1029: Interim Financial Reporting. The comments do
not take the place of the directors' report and statement (as required by the
Corporations Law) and may be incorporated into the directors' report and
statement. For both half yearly and preliminary final reports, if there are no
comments in a section, state NIL. If there is insufficient space to comment,
attach notes to this report.
+ See chapter 19 for defined terms.
================================================================================
BASIS OF ACCOUNTS PREPARATION
19.1 If this report is a half yearly report, it is a general purpose financial
report prepared in accordance with the listing rules and AASB 1029: Interim
Financial Reporting. It should be read in conjunction with the last +annual
report and any announcements to the market made by the entity during the
period. [Delete if preliminary final report.]
19.2 Material factors affecting the revenues and expenses of the economic entity
for the current period, for example, in a half-yearly report, any seasonal
or irregular factors affecting operations.
- --------------------------------------------------------------------------------
Refer attached letter
- --------------------------------------------------------------------------------
19.3 A description of each event since the end of the current period which has
had a material effect and is not related to matters already reported
elsewhere in this Appendix or in attachments, with financial effect
quantified (if possible).
- --------------------------------------------------------------------------------
Nil
- --------------------------------------------------------------------------------
19.4 Franking credits available and prospects for paying fully or partly franked
dividends for at least the next year.
- --------------------------------------------------------------------------------
Balance of franking account adjusted for franking credits which arise from the
payment of income tax provided for in the financial statements and after
deducting franking credits to be used in payment of respective dividends are
projected to be $160.2 million (66 cents per share). Dividends to be paid in the
next year are likely to be fully franked.
- --------------------------------------------------------------------------------
19.5 Changes in accounting policies and estimation methods since the last annual
report are disclosed as follows. (Disclose changes in the half yearly
report in accordance with AASB 1029: Interim Financial Reporting. Disclose
changes in accounting policies in the preliminary final report in
accordance with AASB 1001: Accounting Policies-Disclosure).
- --------------------------------------------------------------------------------
INTEREST BEARING LIABILITIES DENOMINATED IN FOREIGN CURRENCY
In accordance with AASB 1012 : Foreign Currency Translation, from 31 December
2001, interest bearing liabilities (unsecured notes) denominated in foreign
currency have been translated to Australian currency at the exchange rate
applicable at period end. At 31 December 2001, the associated cross currency
interest rate swap has been recognised as a non-current asset of $48.8 million.
There is no impact on net profit or net indebtedness from this change in basis
of presentation.
- --------------------------------------------------------------------------------
19.6 Revisions in estimates are disclosed as follows. For half yearly reports
the nature and amount of revisions in estimates of amounts reported in
previous +annual reports if those revisions have a material effect in this
half year.
- --------------------------------------------------------------------------------
NIL
- --------------------------------------------------------------------------------
19.7 Changes in contingent liabilities or assets are disclosed as follows: For
half yearly reports, disclose changes in contingent liabilities and
contingent assets since the last + annual report.
- --------------------------------------------------------------------------------
N/A
- --------------------------------------------------------------------------------
+ See chapter 19 for defined terms.
================================================================================
ADDITIONAL DISCLOSURE FOR TRUSTS
20.1 Number of units held by the management -------------------------------
company or responsible entity or their N/A
related parties. -------------------------------
20.2 A statement of the fees and -------------------------------
commissions payable to the management
company or responsible entity.
Identify:
- initial service charges
- management fees N/A
- other fees -------------------------------
ANNUAL MEETING
(Preliminary final report only)
The annual meeting will be held as follows:
-------------------------------
Place -
-------------------------------
Date -
-------------------------------
Time -
-------------------------------
Approximate date the +annual report
will be available -
-------------------------------
COMPLIANCE STATEMENT
1 This report has been prepared in accordance with AASB Standards, AASB
authoritative pronouncements and Urgent Issues Group Consensus Views or
other standards acceptable to ASX (see note 12).
-------------------------------
Identify other standards used N/A
-------------------------------
2 This report, and the +accounts upon which the report is based (if
separate), use the same accounting policies.
3 This report does give a true and fair view of the matters disclosed (see
note 2).
4 This report is based on +accounts to which one of the following applies.
(Tick one)
_____ _____
X The +accounts have The +accounts have
_____ been audited. _____ been subject to review.
_____ _____
The +accounts are in The +accounts have
_____ the process of being _____ not yet been audited
audited or subject or reviewed.
to review.
+ See chapter 19 for defined terms.
================================================================================
5 The audit report is attached to this report
6 The entity has a formally constituted audit committee.
Sign here: ---------------------- Date: 11 February 2002
(Company Secretary)
Print name: LAURENCE MARTIN CARSLEY
NOTES
1. FOR ANNOUNCEMENT TO THE MARKET The percentage changes referred to in this
section are the percentage changes calculated by comparing the current
period's figures with those for the previous corresponding period. Do not
show percentage changes if the change is from profit to loss or loss to
profit, but still show whether the change was up or down. If changes in
accounting policies or procedures have had a material effect on reported
figures, do not show either directional or percentage changes in profits.
Explain the reason for the omissions in the note at the end of the
announcement section. Entities are encouraged to attach notes or fuller
explanations of any significant changes to any of the items in page 1. The
area at the end of the announcement section can be used to provide a cross
reference to any such attachment.
2. TRUE AND FAIR VIEW If this report does not give a true and fair view of a
matter (for example, because compliance with an Accounting Standard is
required) the entity must attach a note providing additional information
and explanations to give a true and fair view.
3. CONSOLIDATED PROFIT AND LOSS ACCOUNT
Item 1.1 The definition of "revenue" and an explanation of "ordinary
activities" are set out in AASB 1004: Revenue, and AASB 1018:
Statement of financial performance.
Item 1.6 This item refers to the total tax attributable to the amount
shown in item 1.5. Tax includes income tax and capital gains tax
(if any) but excludes taxes treated as expenses from ordinary
activities (eg, fringe benefits tax).
4. INCOME TAX If the amount provided for income tax in this report differs (or
would differ but for compensatory items) by more than 15% from the amount
of income tax prima facie payable on the profit before tax, the entity must
explain in a note the major items responsible for the difference and their
amounts. The rate of tax applicable to the franking amount per dividend
should be inserted in the heading for the column "Franked amount per
security at % tax" for items 15.4 to 15.7.
+ See chapter 19 for defined terms.
================================================================================
5. CONSOLIDATED BALANCE SHEET
FORMAT The format of the consolidated balance sheet should be followed as
closely as possible. However, additional items may be added if greater
clarity of exposition will be achieved, provided the disclosure still meets
the requirements of AASB 1029:Interim Financial Reporting, and AASB 1040:
Statement of Financial Position. Banking institutions, trusts and financial
Institutions identified in an ASIC Class Order dated 2 September 1997 may
substitute a clear liquidity ranking for the Current/Non-Current
classification.
BASIS OF REVALUATION If there has been a material revaluation of
non-current assets (including investments) since the last +annual report,
the entity must describe the basis of revaluation adopted. The description
must meet the requirements of AASB 1010: Accounting for the Revaluation of
Non-Current Assets. If the entity has adopted a procedure of regular
revaluation, the basis for which has been disclosed and has not changed, no
additional disclosure is required.
6. CONSOLIDATED STATEMENT OF CASH FLOWS For definitions of "cash" and other
terms used in this report see AASB 1026: Statement of Cash Flows. Entities
should follow the form as closely as possible, but variations are permitted
if the directors (in the case of a trust, the management company) believe
that this presentation is inappropriate. However, the presentation adopted
must meet the requirements of AASB 1026. +Mining exploration entities may
use the form of cash flow statement in Appendix 5B.
7. NET TANGIBLE ASSET BACKING Net tangible assets are determined by deducting
from total tangible assets all claims on those assets ranking ahead of the
+ordinary securities (ie, all liabilities, preference shares, outside
+equity interests etc). +Mining entities are not required to state a net
tangible asset backing per +ordinary security.
8. GAIN AND LOSS OF CONTROL OVER ENTITIES The gain or loss must be disclosed
if it has a material effect on the +accounts. Details must include the
contribution for each gain or loss that increased or decreased the entity's
consolidated profit (loss) from ordinary activities and extraordinary items
after tax by more than 5% compared to the previous corresponding period.
9. ROUNDING OF FIGURES This report anticipates that the information required
is given to the nearest $1,000. If an entity reports exact figures, the
$A'000 headings must be amended. If an entity qualifies under ASIC Class
Order 98/0100 dated 10 July 1998, it may report to the nearest million
dollars, or to the nearest $100,000, and the $A'000 headings must be
amended.
10. COMPARATIVE FIGURES Comparative figures are the unadjusted figures from the
previous corresponding period. However, if there is a lack of
comparability, a note explaining the position should be attached.
+ See chapter 19 for defined terms.
================================================================================
11. ADDITIONAL INFORMATION An entity may disclose additional information about
any matter, and must do so if the information is material to an
understanding of the reports. The information may be an expansion of the
material contained in this report, or contained in a note attached to the
report. The requirement under the listing rules for an entity to complete
this report does not prevent the entity issuing reports more frequently.
Additional material lodged with the +ASIC under the Corporations Acts must
also be given to ASX. For example, a director's report and declaration, if
lodged with the +ASIC, must be given to ASX.
12. ACCOUNTING STANDARDS ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not
address a topic, the Australian standard on that topic (if one) must be
complied with.
13. CORPORATIONS ACTS FINANCIAL STATEMENTS This report may be able to be used
by an entity required to comply with the Corporations Acts as part of its
half-year financial statements if prepared in accordance with Australian
Accounting Standards.
14. ISSUED AND QUOTED SECURITIES The issue price and amount paid up is not
required in items 18.1 and 18.3 for fully paid securities.
15. DETAILS OF REVENUE AND EXPENSES AASB1018: Statement of Financial
Performance requires disclosure of revenue and expenses from ordinary
activities according to either their nature or function. Other accounting
standards acceptable to ASX contain similar disclosure requirements. In
line item 1.27 entities must disclose details of expenses using the layout
(by nature or function) employed in their +accounts. The information in
lines 1.24 to 1.31 may be provided in an attachment to Appendix 4B.
RELEVANT ITEMS AASB 1018 requires the separate disclosure of specific
revenues and expenses which are not extraordinary but which are of a size,
nature or incidence that disclosure is relevant in explaining the financial
performance of the reporting entity. The term "relevance" is defined in
AASB 1018. There is an equivalent requirement in AASB 1029: Interim
Financial Reporting. For foreign entities, there are similar requirements
in other accounting standards normally accepted by ASX.
16. $ DOLLARS If reporting is not in A$, all references to $A must be changed
to the reporting currency. If reporting is not in thousands of dollars, all
references to "000" must be changed to the reporting value.
+ See chapter 19 for defined terms.
================================================================================
17. DISCONTINUING OPERATIONS
Half yearly report
All entities must provide the information required in paragraph 12 for half
years beginning on or after 1 July 2001.
Preliminary final report
Entities which adopt AASB 1042 prior to its operative date and all entities
for financial years beginning on or after 30 June 2002, must either provide
a description of any significant activities or events relating to
discontinuing operations equivalent to that required by paragraph 7.5 (g)
of AASB 1029: Interim Financial Reporting, or, the details of discontinuing
operations they have disclosed in their accounts in accordance with AASB
1042.
In any case the information may be provided as an attachment to this
Appendix 4B.
18. FORMAT
This form is a Word document but an entity can re-format the document into
Excel or similar applications for submission to the Companies Announcements
Office in ASX.
+ See chapter 19 for defined terms.
================================================================================
================================================================================
MANAGEMENT'S DISCUSSION & ANALYSIS
SIX MONTHS ENDED 31 DECEMBER 2001
OVERVIEW
The net profit for the six months ended 31 December 2001 was $36.2 million, a
decrease of $6.2 million or 14.6% on the $42.4 million for the previous
corresponding period ("pcp"). Impacting this result is a provision of $10.0
million that has been raised against the possibility of an unfavourable outcome
of a court appeal concerning the tax deductibility of certain rentals paid in
connection with the lease of the Brisbane hotel/casino complex. Also, an above
theoretical win rate on commission premium play business provided approximately
$2.7 million in additional after tax earnings (pcp $9 million). However,
excluding the effects of these two individually significant items, underlying
net profit for the six months ended 31 December 2001 was $43.5 million, an
increase of $10.1 million or 30.2% on the $33.4 million for the pcp (ie.
Normalised Basis). The following analysis considers results on both an actual
and a Normalised Basis to assist in understanding the performance of the
Company's underlying business.
Actual operating revenue of $405.7 million grew 3.4% or $13.3 million from
$392.4 million for the pcp. On a Normalised Basis, operating revenue was $400.5
million which grew 6.5% or $24.5 million from $376.0 million for the pcp.
Supporting this increase were improvements in Keno and Centrebet revenues of
$8.2 million and $3.8 million respectively and a strengthening in casino
revenues of $7.4 million.
Actual earnings before interest, income tax, depreciation and amortisation
(EBITDA) for the period were $105.7 million, compared with the $106.8 million
for the pcp. On a Normalised Basis, EBITDA increased by $8.7 million which was
primarily attributable to the Company's Keno, Monitoring and Centrebet
businesses.
The company tax rate for the six months ended 31 December 2001 reduced to 30%
compared to 34% in the pcp. Assuming the tax rate had not changed, income tax
expense for the six months ended 31 December 2001 would have been higher by $2.8
million (Normalised Basis: $2.6 million).
The Company's credit ratios remain conservative, as measured by the net debt to
shareholders' equity ratio of 23.5% and interest cover of 10.4 times for the six
months ended 31 December 2001. Return on equity for the six months ended 31
December 2001 was 11.5% annualised compared to 14.1% for the pcp. On a
Normalised Basis, return on equity for the six months ended 31 December 2001
would be 13.9% compared to 11.1% for the pcp.
================================================================================
FINANCIAL RESULTS
SIX MONTHS ENDED 31 DECEMBER ($ Million)
ACTUAL NORMALISED(i)
2001 2000 2001 2000
Casino revenue 246.4 250.2 241.2 233.8
Hotel revenue 63.7 62.7 63.7 62.7
------- ------- ------- -------
Land based operations 310.1 312.9 304.9 296.5
Wide area operations(ii) 57.9 48.5 57.9 48.5
Technology operations(iii) 20.2 16.6 20.2 16.6
Sportsbetting operations 11.8 8.0 11.8 8.0
Unallocated 5.7 6.4 5.7 6.4
------- ------- ------- -------
Operating revenue 405.7 392.4 400.5 376.0
Employee related expenses (115.8) (111.6) (115.8) (111.6)
Gaming & wagering
taxes/contribution (iv) (54.8) (54.8) (54.3) (53.0)
Marketing expenses (46.5) (38.6) (45.9) (38.6)
Cost of goods sold (v) (14.2) (14.1) (14.2) (14.1)
Management fee (10.3) (10.8) (10.0) (9.8)
Property operations
and energy costs (10.7) (10.2) (10.7) (10.2)
Keno commissions (11.8) (10.8) (11.8) (10.8)
Other expenses (35.9) (34.7) (35.9) (34.7)
------- ------- ------- -------
EBITDA 105.7 106.8 101.9 93.2
Depreciation & amortisation (26.6) (27.1) (26.6) (27.1)
Net interest expense
& finance charges (10.2) (10.4) (10.2) (10.4)
------- ------- ------- -------
Profit from
ordinary activities 68.9 69.3 65.1 55.7
Income tax expense(vi) (31.9) (25.7) (20.8) (21.1)
------- ------- ------- -------
Net profit before
outside equity interests 37.0 43.6 44.3 34.6
Outside equity interests (0.8) (1.2) (0.8) (1.2)
------- ------- ------- -------
Net profit 36.2 42.4 43.5 33.4
======= ======= ======= =======
(i) excludes effect of above theoretical win on commission play business and
excludes the provision for potential adverse outcome of court appeal re
Conrad Treasury rentals of $10.0 million (2000: Nil)
(ii) includes all keno and gaming machine monitoring activities
(iii) includes AWA Technology Services and Jupiters Technology
(iv) includes community benefit contribution of $2.5 million (2000: $2.5
million)
(v) relates to sale of food, beverage and gaming equipment
(vi) actual includes provision for potential adverse outcome of court appeal re
Conrad Treasury rentals of $10.0 million (2000: Nil)
================================================================================
Statistics:
ACTUAL NORMALISED(i)
2001 2000 2001 2000
EBITDA as a percentage
of operating revenue 26.1% 27.2% 25.4% 24.8%
Earnings per share (cents) 15.0 17.6 18.0 13.8
Dividend per share
(cents) - 100% franked 10.0 9.0
DIVIDEND
The Directors of Jupiters Limited have declared an interim fully franked
dividend for the six months ended 31 December 2001 of 10 cents per share
representing an increase of 1 cent per share, or 11.1%, over the interim
dividend for the pcp of 9 cents per share.
EBITDA BUSINESS SEGMENT ANALYSIS ($ Million)
Internally, management strategically analyses the Company's performance on a
business segment basis. Consolidated EBITDA is analysed on that basis as
follows:
ACTUAL NORMALISED
2001 2000 2001 2000
Land based operations 89.2 98.5 85.4 84.9
Wide-area operations 18.0 13.7 18.0 13.7
Sportsbetting operations 6.3 4.2 6.3 4.2
Technology operations 0.4 (0.4) 0.4 (0.4)
Unallocated (8.2) (9.2) (8.2) (9.2)
------- ------- ------- -------
EBITDA 105.7 106.8 101.9 93.2
------- ------- ------- -------
CASINO REVENUE
Actual casino revenue decreased by $3.8 million, or 1.5%, to $246.4 million for
the six months ended 31 December 2001. On a Normalised Basis, casino revenue
increased by $7.4 million, or 3.1%, to $241.2 million for the six months ended
31 December 2001.
Actual Club Conrad's commission business revenue increased 14% over the previous
period due to an increase in business volumes (front money up 40%) over the pcp
and above theoretical win rates continuing to be achieved. On a Normalised
Basis, Club Conrad's commission business revenue increased 67% over the pcp.
Revenue earned from this business segment remains in the range of 10%-15% of the
Company's revenue.
Club Conrad non-commission premium play revenues remained flat in the south east
Queensland properties. Jupiters Townsville Casino does not participate in
premium play business.
Revenue from gaming machines overall fell 4.3% compared to the pcp. However,
there was significant variation between the three properties with Conrad
Jupiters maintaining revenue
================================================================================
despite the difficult environment. The overall reduction is indicative of the
continuing competitiveness of product offered by clubs and hotels and regulatory
changes introduced by the Queensland Government in December 2001 limiting
denominations that may be processed through gaming machine note acceptors. The
Company will meet this challenge through a significant investment in new gaming
machine product and the implementation of the Cougar machine monitoring system
(developed by Jupiters Technology). It is anticipated that approximately 890 new
machines will be installed by 30 June 2002. During the six months ended 31
December 2001, 101 machines were converted (ie. upgrading of existing equipment)
and 37 new machines were acquired across all three properties. The net increase
in machine numbers was 9 at these properties. There are now 1,197 gaming
machines at Jupiters, 1,216 at Treasury and 255 at Townsville.
Main floor table game revenues decreased in all properties at a combined rate of
4.2% compared to the pcp.
HOTEL REVENUE
Total hotel revenue increased by $1.0 million, or 1.6%, to $63.7 million
compared to the pcp of $62.7 million supported primarily by the success of the
stage show, Hidden Palace, at Conrad Jupiters. Combined room revenue for three
properties was in line with the pcp and was achieved through a 3.6% increase in
the average room rate offset by a 1.9% reduction in average occupancy from 61.0%
in the pcp to 59.8%. Since September 2001, tourism driven occupancy was impacted
by the collapse of Ansett Airlines and the terrorist attacks in the USA,
particularly at Jupiters Townsville. Corporate business at Conrad Treasury
continued to grow. The focus for the year ending 30 June 2002 continues to be on
yield for hotel rooms.
CONRAD JUPITERS, GOLD COAST
Actual operating revenues at Conrad Jupiters increased by $1.2 million, to
$163.2 million for the six months ended 31 December 2001 compared to $162.0
million for the pcp. On a Normalised Basis, operating revenues at Conrad
Jupiters increased by 6.6% compared to the pcp.
The new Club Conrad opened in September 2001 at a cost of $17 million. The
enhanced facilities include private gaming rooms, in-house dining facilities and
35 gaming tables. The new facilities are being well received and are enhancing
Conrad Jupiters' position in the premium player market. They will significantly
increase the property's capacity to service customers during peak periods, such
as Chinese New Year.
Food and beverage operations improved as the pcp had been impacted by
competition for the leisure dollar from the Sydney 2000 Olympic Games.
Casino patronage was approximately 11,000 per day (previous period 11,500)
however, the average main floor spend per patron remained in line with the
previous period.
================================================================================
Despite the reduction in patronage, increasing competition and the introduction
of new limitations on note acceptors, gaming machine revenue was consistent with
the pcp. It is anticipated that approximately 385 new machines will be installed
at this property in the second half of 2001/02.
Hotel room revenue was in line with the previous year, supported by a 4.3%
improvement in average room rate which was offset by a reduction in the average
occupancy from 61.1% in the pcp to 59.4%.
GC2000
GC2000 is a series of projects aimed at improving the efficiency, capacity and
appeal of the Gold Coast property.
Initial works included the reconfiguration and relocation of the Keno area of
the main gaming floor, conversion of Fortunes Nightclub to a new Club Conrad
premium player facility, a new 517 space carpark and a refurbishment of the
"old" Club Conrad to accommodate a club-style facility for premium gaming
machine players. 131 additional gaming machines are being installed in the new
Gold Suite facility, which will open in the June 2002 half.
Other GC2000 projects are currently under review and will be subject to the
company's strict return on investment policies.
CONRAD TREASURY, BRISBANE
Actual operating revenues at Conrad Treasury decreased by $3.1 million, or 2.4%
to $126.3 million for the six months ended 31 December 2001 compared to $129.4
million for the pcp. On a Normalised Basis, operating revenues at Conrad
Treasury were consistent with the pcp.
Casino patronage was approximately 9,000 per day (pcp 10,000) with the average
main floor spend per patron improving slightly on the pcp.
Gaming machine revenue decreased 7.7% over the pcp affected by competition and
new limitations on note acceptors. As noted above, the Company will address this
with a significant investment in new gaming machines and the implementation of
the Cougar machine monitoring system. It is anticipated that approximately 400
new machines will be installed at this property before 30 June 2002.
Hotel room revenue continued to grow, with occupancy increasing to 76.4% (pcp:
71.9%) and the average room rate also increasing.
JUPITERS TOWNSVILLE HOTEL & CASINO
Operating revenues at Jupiters Townsville decreased by $1.0 million, or 4.6% to
$20.6 million for the six months ended 31 December 2001 compared to $21.6
million for the pcp.
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Gaming machine revenue decreased 5.0% over the pcp affected by local competition
and new limitations on note acceptors. The property is planning a significant
investment in new gaming machines and the implementation of a new machine
monitoring system in the second half of 2001/02. It is anticipated that
approximately 104 new machines will be installed at this property by June 30,
2002.
Hotel room revenue, which is largely tourism based, fell 5.4% compared to the
pcp.
GOLD COAST CONVENTION & EXHIBITION CENTRE
Construction commenced on the site of the Gold Coast Convention and Exhibition
Centre on Monday, 11 February 2002. Completion is scheduled for mid 2004. A
considerable number of reservations for the second half of 2004 and beyond have
already been received.
NON-CASINO OPERATIONS
Revenue earned by non-casino operations of $95.6 million was 23.6% of the actual
operating revenue of the Company (23.9% on a Normalised Basis) compared to $79.5
million (20.3%) in the pcp. This is illustrative of the Company's strategy of
diversification beyond land based casinos.
Jupiters provides keno to approximately 1,900 outlets in Queensland and New
South Wales. Keno turnover in Queensland for the six months ended 31 December
2001 was $131.2 million (pcp: $110.0 million) and in NSW was $176.3 million
(pcp: $175.0 million). The increase in turnover for the Queensland game is
attributed to the success of the new bet type "Heads or Tails?" launched in
November 2000. Recent relaxation of legislative restrictions over enhancements
to the New South Wales game is expected to contribute to growth of turnover in
that state.
Centrebet generated revenue of $11.8 million for the six months ended 31
December 2001, an increase of $3.8 million or 48% compared to $8.0 million for
the pcp. The growth in international sportsbetting resulted in turnover of
$179.6 million in the period, an increase of 63% over the pcp.
Monitoring of gaming machines in clubs and hotels in Queensland generated
revenue of $8.2 million during the six months ended 31 December 2001, compared
with $7.0 million for the pcp. The Company's market share continues to sit just
below the regulated maximum level of 40%.
AWA Technology Services division is the largest independent third party
maintenance service provider to the IT and gaming industries in Australia and
earned revenue of $20.0 million for the six months ended 31 December 2001, an
increase of $3.8 million on the pcp.
EXPENSES
Actual operating expenses (including gaming and wagering taxes/contribution)
were $300.0 million compared to $285.6 million in the pcp, an increase of $14.4
million or 5.0%. On a
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Normalised Basis, operating expenses were $298.6 million compared to $282.8
million in the pcp, an increase of $15.8 million or 5.6%. The majority of the
increase is attributable to increased spend on marketing activities for the
casino properties.
Depreciation and amortisation expense was $26.6 million, consistent with the pcp
of $27.1 million.
Net interest and finance charges totalled $10.2 million, (pcp: $10.4 million).
During the six months ended 31 December 2001, the Group retired $50.4 million of
bank debt.
JUPITERS LIMITED
11 FEBRUARY 2002
For further information contact:
Mr Rob Hines, Managing Director & Chief Executive Officer
Phone: (07) 5584 8900
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