Deutsche Bank cuts earnings forecasts for Crown

Deutsche Bank has cut its earnings forecasts for Crown Resorts by 5 to 6 percent in fiscal 2015, citing disappointing revenue and earnings from its Macau operations.

"We have reduced our earnings forecasts by five to six per cent to reflect lower earnings from Melco Crown, CrownBet and Aspinalls, partly offset by higher earnings from Crown Melbourne," Deutsche Bank analysts said in a note.

CrownBet, Crown's online sportsbook business, has been impacted by higher-than-expected advertising spending, while Aspinalls in London has been hit by a downturn in global VIP turnover.

The analysts said the recent changes to visa arrangements for Mainland visitors were a "minor positive" for the casino operators.

Deutsche Bank revised its fiscal 2015 profit forecast for the company to $481.1 million, down from $512.1 million.

The Bank added that Crown’s Melbourne property was benefiting from stronger domestic gaming revenue and an increase in the number of Chinese visitors.

 

Latest Intelligence

Latest issue

PATA CEO sees slow recovery, but optimism for future

AGB Podcasts