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Burswood Shares Fall after Warning

“But the shares recovered partially later in the day to finish 2¢ lower at 84¢ (US54¢)as the market tried to digest the implications of the latest warning for Burswood's longer term earnings.

“Burswood said after the close of trading on Friday that its 2002-03 profit would be 50 per cent lower than last year's $20.6 million result due to a woeful win ratio on its high risk international commission business (ICB).

“…But Burswood managing director John Schaap said yesterday the company retained the full support of its biggest shareholders, who fully understood the risks attached to the casino industry.

“…Despite Burswood's diabolical ICB win rate, Mr Schaap said limitations implemented in September to target second-tier players and reduce the overall risk were working. The changes include strict betting limits per table aimed at discouraging the international gambling elite with the capacity to clean the casino out.

“…Mr Schaap said visitor `headcounts’ and hotel accommodation rates were growing, reflecting the substantial resources put into upgrading facilities and other initiatives to boost domestic visits.

“Similarly, the impact of smoking bans on the main gaming floor was starting to wane, along with the effects of SARS and international tension on tourist numbers.

“…As a virtual monopoly in WA, Burswood was also well placed to capitalise on the State's booming economy and any recovery in international tourist numbers, he said.”

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