According to hospitality accountants, despite the latest forecast that warned of a negative revenue growth for the pubs, bars and nightclubs sector; pokie machines in Tamworth still reported over $32 million of profits in 2018. The report shows that the profit in pokie machines is increasing as people spend more through the machines. The profit increased by $2 million from 2017 despite the machines and licensed premises being fewer in number.
In 2018, there were 742 gaming machines in 38 pubs and clubs in Tamworth, which meant each machine drew a profit of $43,422.82 on average. Tamworth’s pokies paid over $5 million in tax last year. Poker machine gamblers in New South Wales have lost a record amount of $18.7 million per day in 2018, amassed on 93,165 poker machines. Pubs and clubs are great venues to socialize at. There was concern that gambling had almost reached a saturation point in the country with cross-platform advertising and apps that make gambling easier.
This year, small bars and pubs with premium drink and food offerings were expected to perform well while pubs that depend on pokies revenue were projected to come under pressure from tightening regulations. Owners are urged to let other revenue streams in to offset any impact on the business. It would be prudent to speak with hospitality accountants and make sure business financials are healthy. It would be wise to control and reduce debt to better handle the expected shock to the sector. Funding costs would likely continue to increase for pubs and availability of credit likely tighter. Pub real estate values have soared as well, prompting debt level and tightened spending concerns.
However, investors remain optimistic, saying the current market conditions are challenging but also cyclical, presenting a great buying opportunity. The environment is said to be stable and collaborative with positive initiatives that may even enhance the industry. Pubs sold to the Woolworths-controlled ALH Group and Cole’s Liquorland at yields below 6 per cent in 2018, reflect confidence in the market as well.
You can click here to speak to business experts. We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
You can click here to speak to a business, accounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
Email Address: firstname.lastname@example.org
Ballarat Accountants | Business Accountants Ballarat | Ballarat Bookkeepers | Ballarat Mortgage Broker | Ballarat Financial Planners | Ballarat Accounting Firms | Ballarat Bookkeeping Firms
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Melbourne Accountants | Business Accountants Melbourne | Melbourne Bookkeepers | Melbourne Mortgage Brokers | Melbourne Financial Planners | Melbourne Accounting Firms | Melbourne Bookkeeping Firms
Sunbury Accountants | Business Accountants Sunbury | Sunbury Bookkeepers | Sunbury Mortgage Brokers | Sunbury Financial Planners | Sunbury Accounting Firms | Sunbury Bookkeeping Firms
Gisborne Accountants | Business Accountants Gisborne | Gisborne Bookkeepers | Gisborne Mortgage Brokers | Gisborne Financial Planners | Gisborne Accounting Firms | Gisborne Bookkeeping Firms
Phone: 03 97444522
Sunbury Office Address: Suite 13, 33-35 Macedon Street, Sunbury, Victoria 3429, Australia
Gisborne Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437