Australian-listed casino investor Aquis Entertainment has seen its revenue at boutique Casino Canberra decline 3.6% to AU$12.3 million for the six months to 30 June 2018, but the company says the result are in line with targets.
Release of its 1H18 financial results completed an eventful day for Aquis, with CEO Jessica Mellor announcing her resignation after two years in the role and the company terminating an agreement with Executive Sports and Entertainment Ltd (ESE) to create an eSports brand titled QeSports.
Mellor, who joined Aquis in 2013, will officially depart in February 2019.
Addressing the collapse of its eSports plans, Aquis said in a filing to the Australian Securities Exchange that “Aquis and ESE did not proceed to binding agreement as the parties were unable to reach agreement on the final terms. Aquis has today agreed to terminate their non-binding agreement with ESE.
“No financing arrangements related to the proposed joint venture, as referred to in the 29 May 2018 announcement, has been entered into. Aquis advises that the company does not intend to pursue an eSports business at this time.”
Despite the developments, Aquis was quick to tout its reduced losses during the first six months of the year, down from AU$4.2 million last year to AU$2.2 million this time around.
“The group continued to apply the medium-term strategy outlined in 2016 of demonstrating the group’s ability to significantly improve an underperforming operation by a combination of leadership and targeted investment in the business,” the company said.
“Following a total refurbishment of the main gaming floor which was completed in mid-2016, operations have continued to grow month-on-month through the 2018 half of the year.”
Aquis is still to submit a revised proposal for its planned multi-million dollar expansion of Casino Canberra after the ACT government rejected a bid that centered around permission to operate 500 slot machines on premises. The government has instead offering 200 slot machines and 60 electronic table games, subject to certain strict conditions. Casino Canberra is not allowed to operate any slot machines under current law.
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