The iconic Hippodrome Casino in London reported that its profits suffered a sharp decline over the past fiscal year, blaming economic and political turbulence for diminishing its patrons’ confidence.
As revealed in the latest financial filings published by the casino operator a few days ago, its revenue over the twelve months which ended on December 31st, 2018, fell by about 2% from £77.8 million to £76.5 million, while its EBITDA (earnings before interest, tax, depreciation and amortisation) was down from £8.6 million in 2017 to £5.2 million in fiscal 2018.
The tax burden of the casino operator accounted for 42% of its overall turnover over the 12 months ended on December 31st, 2018. A total amount of £32.4 million was paid by the company in Duties, VAT, PAYE, social security and licensing costs.
In its latest report, the Hippodrome Casino, which is currently the biggest international-style casino on the territory of the UK, said that the significant decline in its operating profit was due to the uncertainty associated with BREXIT, the slow overall economic growth and the unusually long and hot summer in 2018. The directors of the gambling operator described the UK casino market in 2018 as “challenging”. According to them, it was the summer heatwave, the slow economic growth, rising political and regulatory pressure and the relatively weak consumer confidence which were to blame for the disappointing results of the casino.
Hippodrome Casino Officials Say UK Casino Market Remains Challenging in 2019
As the Hippodrome Casino revealed, a total of 1.7 million customers visited the venue over the last fiscal year, with their number marking a 4% increase compared to the previous 12-month period. The operator said in its report that consumers seem to be increasingly seeking not only to gamble but an overall experience, so the London-based gambling venue has a lot to offer, with its 3 live gaming areas, slot machine, electronics, high-quality drinking and dining areas and live theatre shows.
The operator’s officials shared in the report, the UK casino market remains challenging in the first part of 2019, but they believe that the casino facility’s business is well-placed to be able to meet these challenges in the months to come. They further revealed that the casino continues to make investments to improve its offering for customers and remain positive that the prospects for the business are strong.
The company’s activities remain subject to some risk and uncertainties, mostly regarding the casino’s cash flow and loss of licence. The gaming operating licence is recognised as fundamental to the primary business activity of the operator, so a potential loss of this licence would have a detrimental impact on the company. As for the cash flow, the Hippodrome Casino revealed that it seeks to minimise liquidity risk by keeping adequate cash reserves.
The managers of the iconic London casino have also outlined the major financial risk management objectives and policies in the latest annual report released by the Hippodrome Casino. According to information included in the report, the operations of the company expose it to various financial risks, including liquidity risk and the effects of changes in credit. That is why the casino operator is aimed at maintaining sufficient financial reserves to be able to face volatile gaming results.