10/08/2012 03:05:00

UPDATE: Crown Profit Jumps 53%, Buoyed by Macau Joint Venture

-- Crown reports net profit of A$513.3 million, up 53%

-- Says profit helped by strong result from Melco Crown Entertainment joint venture in Macau

-- Faces increased competition from Asian casino resorts

(Adds chief executive's remarks from fifth paragraph, background throughout)

By Gavin Lower

MELBOURNE--Crown Ltd. (CWN.AU) said net profit in fiscal 2012 grew 53% on year, even as the company's Australian properties were hit by competition from Asian casino resorts for lucrative big-spending gamblers.

Net profit in the 12 months to June 30 rose to 513.3 million (US$542.6 million) helped by a strong result from its Melco Crown Entertainment Ltd. (6883.HK) joint venture in Macau, Australia's largest casino operator by market value said in a statement Friday.

Its Australian casinos--in Melbourne and Perth--were hit by competition from new gambling-resort developments in Singapore for Asia's so-called high rollers, or VIPs, as well as by weakening consumer sentiment in Australia.

Normalized profit, which the company says best reflects its performance, was A$415 million, up 22% from the previous year.

"We continued to see some evidence of weak consumer sentiment, which has affected some segments of the business, particularly in the second half, while the premium markets maintained their strength," Chief Executive Rowen Craigie said in the statement.

Crown, whose chairman, Australian billionaire James Packer, owns a majority stake through his Consolidated Press Holdings Ltd., said it would pay a final dividend of 19 Australian cents a share.

The casino operator said that while revenue from its VIP division increased by 19% over the year, the growth was generated at a lower margin because of changes in the mix of the business, higher taxes at its Melbourne property, and the increased competition from Asia.

"Our strategy to source new customers from China also continues as we seek to offset the ongoing impact of the Singapore integrated resorts on our VIP business," Mr. Craigie said.

The company said it received A$135.8 million as its share of Melco's profit for the year. The joint venture owns the Altira Macau and City of Dreams hotel-and-casino complexes in Macau, China.

In Australia, Crown is aiming to ramp up its attractiveness to overseas tourists and gamblers, as well as to domestic holiday and business travelers. Earlier this month, it announced plans to develop a new luxury hotel at its Burswood hotel-and-casino complex in Perth for A$568 million.

The company is also looking into developing another luxury hotel-and-gaming facility for big spenders in Sydney in New South Wales state.

Crown faces a hurdle to its Sydney plans because rival casino company Echo Entertainment Group Ltd. (EGP.AU) holds an exclusive licence to operate casinos in New South Wales until 2019. Crown owns 10% of Echo and has applied to regulators to further boost its stake.

Analysts have said Crown's development plans in Sydney dampen speculation that it may make a takeover bid for Echo, and now wonder whether it may seek an agreement to use its rival's gambling licence to start the new gaming facility, which would require separate regulatory and government approvals.

Malaysian gaming giant Genting Bhd. (3182.KU) has subsidiaries that together own 9.9% of Echo. It too has asked Australian regulators for permission to increase its stake, prompting speculation that it may similarly be looking to take over the group.

Write to Gavin Lower at gavin.lower@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

August 09, 2012 22:05 ET (02:05 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
22 Jun
I:SP500
  Hejsa alle sammen   Konjunktur: Ifølge vedlagte teoretiske model omkring de ledende indikatorer be..
48
20 Jun
GEN
Et gammelt indlæg:   Hvis man kigger lidt tilbage i tiden og ser på de kvartalsvise resultater, så l..
36
18 Jun
PNDORA
              Jeg har lavet en fuld analyse på Pandora, som er en blanding af en regnskabs-analyse o..
17
20 Jun
GEN
Hold da kæft, du er godt nok en sur (gammel ?) mand......
16
19 Jun
VWS
https://www.vestas.com/en/media/company-news?n=1763161#!NewsView
12
19 Jun
I:SP500
Trump har bedt det amerikanske handelsministerie om en liste over kinesiske varer for 200 mia USD, s..
12
18 Jun
BAVA
Dvs de bør være der indenfor 9 børsdage... Hvis disse data gentager det som er kommet frem indtil nu..
12
23 Jun
 
USA blev løftet ud af recession under Obama. Punktum. Økonomien kørte fint da Trump blev valgt og er..
11
20 Jun
NOVO-B
Oral semaglutid viser statistisk signifikant større reduktioner i langtidsblodsukker og vægt sammenl..
11
18 Jun
VWS
I begyndelse af året havde grædekonerne kronede dage, hvad angår ordreindtag. Det har li'som ændret ..
11

HSBC Bank Plc : Form 8.5 (EPT/RI) - Lonmin PLC

22/02/2018 10:54:53
FORM 8.5 EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY Rule 8.5 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Name of exempt principal trader: HSBC BANK PLC (b) Name of offeror/offeree i..

Rathbone Brothers Plc : Preliminary announcement of 2017 results

22/02/2018 07:00:19
Funds under management up 14.3% to £39.1 billionThis is a preliminary statement of annual results published in accordance with FCA Listing Rule 9.7A. It covers the year ended 31 December 2017. Mark Nicholls, Chairman of Rathbone Brothers Plc, said: "UK and global investment markets performed well in 2017, with some indices reaching record levels towards the end of the year. This outcome has b..

Elliott Capital Advisors, L.P : Form 8.3 - GKN Plc

Related news
21/02/2018 15:25:10
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Full name of discloser: Elliott Capital Advisors, L.P. (for itself and related general partners ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
BIOLIFE4D Modifies its Regulation A+ (Mini-IPO) Offering Due to Popular Demand
2
Lexicon Pharmaceuticals Announces Positive 52-Week Results From Sotagliflozin inTandem2 Study Presented at ADA 2018 and Published in Diabetes Care
3
Zafgen Announces Positive Full Results in Phase 2 Proof-of-Concept Trial of ZGN-1061 in Patients with Difficult-to-Control Type 2 Diabetes
4
Zealand Pharma presents two dasiglucagon milestone studies at the 78th Scientific Sessions of the American Diabetes Association (ADA)
5
Zealand Pharma presents two dasiglucagon milestone studies at the 78th Scientific Sessions of the American Diabetes Association (ADA)

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2018   Disclaimer and Terms of Use
Quote information is delivered by Morningstar.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
24 June 2018 04:37:14
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20180619.1 - EUROWEB7 - 2018-06-24 05:37:14 - 2018-06-24 04:37:14 - 1000 - Website: OKAY