Echo's cost savings to beat guidance

Echo Entertainment Group (EGP) says it expects total cost savings in fiscal 2014 to exceed its guidance of $60 million.

Operating expenditure is on track to be below $880m in fiscal 2014, allowing for increased activity in the second half of the year, Echo told the Macquarie Australia Conference.

First-half operating expenditure was $425.3m, down 4.5 per cent on the previous corresponding period, despite inflation and an increased operating footprint in the food and beverage division.

Enterprise bargaining agreement renegotiations at The Star and Treasury Brisbane will reduce cost inflation pressures beyond fiscal 2014, Echo said.