Crown Resorts reports varied performance across businesses in 2015

Wednesday 24th of February 2016

Crown Resorts Limited reported a net profit of A$205 million (US$147.7 million) for the half year ended Dec. 31, 2015, down 22.1 percent compared to the same period in 2014. The result was impacted by growth in Australian operations and a decline in contribution from Crown’s Macau venture.

“The 2016 first half results across Crown’s portfolio of businesses were varied,” said the chief executive officer of Crown Resorts, Rowen Craigie.

Overall revenue for Crown Resorts was reported at A$1.9 billion, with the Australian resorts overall reporting better performance than their Macau counterparts.

Australian resorts reported a 4.2 percent increase in normalized revenue to A$1.7 billion for the half, with a 9.8 percent increase in main floor gaming revenue, and a 3.8 percent decline in VIP program play turnover. This was reasonable outcome given the downturn if VIP play across Asia, said Crown.

Crown Melbourne normalized EBITDA was reported at A$352.5 million, up 0.4 percent from 2014, and normalized revenue went up 3.2 percent to A$1.2 billion in comparison to 2014.

Crown Perth reported normalized EBITDA at A$130.1 million, up 2.4 percent, and normalized revenue went up 6.7 percent to A$493.7 million.

In regards to the new Crown Towers development, which will feature 500 luxury hotel rooms and other facilities, Crown says the project is proceeding on time, with a target opening in December 2016.

Crown’s Macau operations, Melco Crown Entertainment on the other hand suffered from weak market conditions in Macau. Net profit after tax was reported at $37.2 million, down 66.3 percent from the previous year.

“Macau continues to experience a challenging period which has adversely affected all casino operators. Overall gross gaming revenue across the Macau market in the half year to 31 December 2015 declined 31.1 percent.” said the operator. “However, MCE has further expanded its market share in Macau and increased MCE’s exposure to the more resilient and profitable mass market segments.”

Crown’s wagering and online social gaming operations, which includes CrownBet, Betfair Australasia and DGN Games reported an EBITDA loss of A$9.8 million.

The directors have declared a dividend on ordinary shares of 33 cents per share, which is payable on Apr. 6, 2016 to shareholders registered at 5:00pm on Mar. 23, 2016.