James Packer's Crown Casinos Smash Profits With A 65% Lift

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Net profits at Crown Resorts, billionaire James Packer’s gaming company, have soared 65.7% after a strong second half in Australia and a big trading year in Macau.

However, consumer sentiment is hurting business at the Melbourne and Perth casinos.

Overall net profit for the 12 months to June was $655.8 million after significant items. Normalised net profit, stripping out the VIP gambling area, was $640 million, up 35.2%.

CEO Rowen Craigie called it a satisfactory result.

“We continue to see weak consumer sentiment that has adversely impacted trading at both Crown Melbourne and Crown Perth and which reflects the fact that their local economies are continuing to experience structural and cyclical challenges,” he says.

Compared to last year, normalised EBITDA was up 2.8% in Crown Melbourne and up 0.3% in Crown Perth and main floor gaming revenue was up 1.4% across Crown Melbourne and Crown Perth. VIP program play turnover was down 1.5% for the year.

A final dividend of 19 cents a share was declared, taking the total full year dividend of 37 cents.

Australian resorts performance:

  • Normalised revenue of $2,814.8 million, up 1.4%
  • Main floor gaming revenue of $1,505.7 million, up 1.4%
  • Non-gaming revenue of $634.8 million, up 4.5%
  • VIP program play turnover of $49.9 billion, down 1.5%
  • Normalised EBITDA of $803.4 million, up 2.0%
  • Reported EBITDA of $909.0 million, up 15.4%

Crown earlier this month announced the acquisition of land in the Las Vegas casino strip.

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