Echo jumps on FY earnings forecast

Company News

Shares in Echo Entertainment Group Limited (ASX:EGP) jumped in morning trade after forecasting higher than expected full year earnings. 

The casino owner and operator expects to report annual normalised EBITDA of between $430 million to $435 million in the 2014 financial year.

However, the result could be impacted by the win rate and turnover in the VIP Rebate business for the remainder of the financial year which Echo warns is subject to potential volatility. 

Echo says its cost cutting program and improved profit focus have continued to support earnings growth in the second half. 

The company expects to report an annual a net profit of between $150 million to $153 million when it releases full year results on August 13. 

Shares in Echo Entertainment Group had jumped almost 9 per cent to $3.01 in morning trade against a benchmark fall of 0.4 per cent.  

Echo Entertainment Group’s net profit fell 30 per cent to $46.1 million in the first half of the 2014 financial year.