Coroner & Legal
Profit jump for Federal
GAMBLING and tourism operator Federal Group has recorded an increased profit for the 2008-09 financial year.
The annual report of Mulawa Holdings shows profit of $25.8 million, compared with $22.6 million the previous year.
A buoyant year in the tourism industry helped the group increase revenue by $22 million to $488 million.
Federal operates at Cradle Mountain, Strahan and Coles Bay and has the Wrest Point and Launceston casinos and 11 hotels, as well as the West Coast Wilderness Railway and Gordon River Cruises.
Cash receipts from the group increased by a significant $32 million to $540 million.
Gambling taxes paid to the State Government in relation to casino operations and poker machines increased by $5 million to $89 million.
The profit announcement coincides with the passing of the Gaming Amendment Bill last week which restricted poker machine spins to a maximum of $5 and banned the serving of food and alcohol in public gaming areas after 9pm.
Tasmanian Gaming Commission figures show $224 million was lost on poker machines in Tasmania in 2008-09.
During the financial year, Federal Group bought the Henry Jones Art Hotel from the Vos group for $25.1 million.
The company increased employee numbers from 1936 to 1982, causing a
$12 million increase to $140 million in personnel expenses.
It declared a dividend of $150,000 for each of the 100 Z-class shares owned by five directors — a total of $15 million.
Federal Group is constructing a $30 million resort, known as Saffire, at Coles Bay.
Picture: Greg Farrell, Federal boss