Echo Entertainment Group has said in a statement to the ASX that full-year profit will fall, while the company has also confirmed a capital raising.
The group now expects earnings of between $270 million and $315 million for the year to June 30, down from last year’s earnings of $347 million.
“Trading conditions have remained difficult in (the second half of financial year 2012) with revenues negatively affected by soft consumer sentiment,” Echo said in a statement.
A new capital raising also announced will help the company’s debt, according to managing director and chief executive Larry Mullin.
Get business news first
Sign up to SmartCompany’s daily newsletter
“The entitlement offer announced today will reduce gearing, help ensure a more appropriate capital structure and maintain financial flexibility for the company,” he said.
This article first appeared on SmartCompany.