Transcript Slide 1

Making a dollar or Making
a difference
Lessons from history
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A story from 2004
A story from 2009
Improving your Club’s ROI
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Make sure that you have worked out
how much profit is enough:
– To trade
– To maintain capital investment
requirements
– To repay debt
– To create a small surplus for a rainy day
Improving your Club’s ROI
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Ensure that your own business is efficient
– Gaming performance- what is an appropriate
installation size and npmpd?
– Gaming operating costs
– Beverage margins?
– Margins in food service/rental streams
– Overall wage costs
– Service contracts
– Promotional effectiveness
– AEMP%
Consider use of Assets
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Floor space – underutilised?
Underutilized assets
Surplus land
Trading hours/areas
Non-core non-performing assets
Diversification
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What works?
What is the expected return?
Note IPART commentary on
diversification – caution required
Many clubs consider diversification as
the creation of a rent roll
Diversification of income or profit?
Return on Equity
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Is this a relevant measure for a
company limited by guarantee?
Investment in facility is more
justified on the basis of incremental
cash flow
Conclusion
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Must achieve required level of
profitability
Increasing requirement toward user
pays
Outcomes from every dollar spent
must be able to be measured and
justified