Echo Entertainment Group forecasts lower full-year profit

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.

“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.