🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UPDATE 1-Australia's Crown Resorts full-year profit falls 23 pct

Published 17/08/2016, 10:18 am
© Reuters.  UPDATE 1-Australia's Crown Resorts full-year profit falls 23 pct
CWN
-
SGR_OLD
-

(Adds details about Australian ops, CEO comment)

SYDNEY, Aug 17 (Reuters) - Crown Resorts Ltd CWN.AX , Australia's No. 1 casino company, posted a 22.7 percent decline in full-year net profit due to subdued turnover at its resorts in the Asian gambling hub of Macau, while Australian operations reported small gains.

Crown, majority owned by billionaire James Packer, has benefited from a Chinese corruption crackdown as junket operators directed VIP gamblers to Australia to avoid scrutiny in Macau, a Chinese territory and global gaming capital.

But that traffic has slowed with the rise of cheaper gambling destinations like the Philippines and Vietnam, hurting Crown and its smaller Australian rival Star Entertainment Group Ltd SGR.AX .

"Macau continues to face challenges arising from softer gaming demand, which has adversely affected all casino operators," Crown said in a statement.

"However, Melco Crown believes that revenue trends, particularly in the mass market segments, will improve as Macau further evolves into a multi-faceted, mass-market-focused destination."

Normalised net profit for the company was A$406.2 million ($312.57 million) for the 12 months to June 30, from A$525.5 million a year ago and slightly below average analysts' forecast of A$404.71.

"Normalised" net profit is a measure used by casino companies to strip out irregularities in win rates. Actual net profit jumped 146.4 percent led by net gains of more than A$600 million from the sale of shares in Macau venture Melco Crown. gross gaming revenue across the Macau market in the year to June 30 fell 22.5 percent, Crown said.

At Crown's Australian resorts, main-floor gaming revenue rose 5.8 percent but VIP turnover slipped 8 percent, reflecting the depressed nature of VIP gaming activity across Asia, Crown CEO Rowen Craigie said in a statement.

In its flagship casino in Australia's second-biggest city Melbourne, Crown said normalised operating margin fell to 29.1 percent. ($1 = 1.2995 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.