Echo Entertainment CEO John Redmond has quit after the company reported weak first-half profit. Chief Financial Officer Matt Bekier will take over from Redmond, who had been in the job for just one year. Echo said normalised net profit after tax, which excludes one time items, rose 1.3 percent to $71.5 million ($68.9 million), with soft consumer sentiment, lower VIP business and a lower hold in VIP gaming rooms all weighing on results. Normalised gross revenue fell 4.8 percent to $930 million, with VIP revenue fell 9 percent. “H1 continued to be a challenging year, with soft underlying consumer sentiment across our major markets,” Chairman John O’Neill said. The company said it’s progressing with a $345 million investment to revamp its Jupiters Gold Coast property and the sale of its Jupiters Townsville for $70 million.
Echo also said late last week that it has become aware that major shareholder, Commonwealth Bank of Australia, has raised its stake in the company from 61.45 million shares to 69.71 million, which represents 8.45 percent of the company’s voting rights. Echo noted that its constitution prevents any investor from accumulating more than 10 percent of its voting rights.