Crown Resorts Announced 97% Increase in Net Profits
Crown Resorts Ltd. has announced that its annual net profits rose by 97% mainly due to proceeds from the sale of its stake in a Macau casino operator that offset declines in VIP play following a crackdown by Chinese authorities.
In the 12 months through June net profit totalled $1.49 billion. According to the company the sale of the Macau stake was worth around $1.3 billion. The figures released show a real weakness in VIP gaming, revenue from operations fell 7.5% and VIP program play revenue at its Australian resorts was down 49%.
According to Crown, before significant item including the Macau sale, net profit was down 21.5%.
The company declared a final dividend of 30 cents, compared to 39.5 cents during the same period last year. The company also said that it would be buying back another 29.3 million shares.
John Alexander, the Executive Chairman, said that the full-year result “reflected difficult trading conditions”.
Since the crackdown in China and resultant problems for the company, Crown has pulled back on some of its international projects and is focusing on its Australian assets such as a new casino-resort that is being developed on Sydney’s waterfront and a new hotel at its marquee facility in Melbourne.
The company has pulled out of a Las Vegas casino project and sold its stake in the Macau casino operator Melco Resorts & Entertainment Ltd. that dropped Crown from its name.
However, the company’s shareholders are happy thanks to a AUD$500 million share buyback program that it finished in June. Overall, the company’s shares have been steadily rising over the past year.