Join

Enter Details

Comment on stories, receive email newsletters & alerts.

@
This is your permanent identity for Business Insider Australia
Your email must be valid for account activation
Minimum of 8 standard keyboard characters

Subscribe

Email newsletters but will contain a brief summary of our top stories and news alerts.

Forgotten Password

Enter Details


Back to log in

James Packer's casino profits took an 89% hit in Macau

Kristian Dowling/Getty Images

James Packer’s Crown Resorts posted a flat 1.6% rise in half-year profits to $205.045 million on weak returns from Macau.

Revenue was up 10.1% to $1.879 billion for the six months to December.

However, Crown’s share of profits from Melco Crown Entertainment, the casino operator in Macau, were down 89% to $9.4 million, a drop of $75.9 million.

A short time ago, Crown shares were weaker by 5.5% to $11.86.

“Overall gross gaming revenue across the Macau market in the half year to 31 December 2015 declined by more than 30%,” says Crown CEO Rowen Craigie.

Interim dividend payments were saved by a special dividend from Melco Crown Entertainment. Crown’s share is $US120 million.

Crown’s dividend is 33 cents a share, franked to 50%, up from 18 cents last year.

The VIP program turnover in Australia was down 3.8% to $35.7 billion but Craigie says this is reasonable given previous strong growth and a depressed VIP program play market across Asia.

Overall revenue for Australia was up 4.2% to $1.695 billion, with main floor gaming revenue 9.8% higher at $861.1 million.

Billionaire James Packer is no longer a director of Crown Resorts but still has 53.1% of the casino business.

There are reports that Packer’s private company, Consolidated Press Holdings, is speaking with private equity firms and pension funds about a possible joint bid to take the casinos private.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.