eat into Crown profits - 19th February 2015
in James Packer's Crown casino group have soared by
more than seven per cent despite a slump in first
suffered a 47 per cent fall in first half profit after
being hit by asset impairment charges and hefty costs
from its abandoned Sri Lanka resort.
net profit fell to $201.75 million in the half year
to December 31, from $382.45 million a year earlier.
result was weighed down by $61.3 million in significant
items linked to a writedown in Crown's investment
in the US-based Cannery and costs from its now abandoned
plan for a $US350 million casino resort in Sri Lanka.
earnings were also hit by a sharp fall in earnings
from its Melco Crown Entertainment business in Macau,
where weak market conditions adversely affected all
group's normalised net profit - which strips out VIP
win rates, significant items and opening costs from
Melco Crown in Macau - rose 2.3 per cent to $322.4
revenues rose 9.2 per cent to $1.7 billion while its
normalised result was up 17.2 per cent at $1.72 billion.
executive Rowen Craigie said gross gaming revenues
across the Macau market fell 30.4 per cent in the
deterioration in the Macau market has continued into
the second half," he said in a statement.
he described as satisfactory the performance of Crown's
Australian gaming businesses given the subdued level
of consumer sentiment.
earnings at Crown Melbourne rose by 26.1 per cent
and by 7.7 per cent at Crown Perth.
floor gaming revenue rose 3.5 per cent at both casinos.
Craigie said there had been strong growth in the VIP
program play turnover towards the end of the first
half, with record monthly turnover in November and
December in Melbourne.
shares were up by $1.02, or 7.05 per cent, at $15.48
at 1109 AEDT.
market analyst Ben Le Brun said investors had expected
a disappointing result from Crown's Macau business.
looks as if a number of other parts of businesses
have picked up the slack and it's come in better than
expected," he said.
Crown has extended Mr Craigie's contract to November
said it had reduced his severance pay entitlement
from 24 months base salary to 12 months.