Australian casino operator Crown Resorts Ltd said on Thursday that group-wide revenue in the six months to December 31, 2017, increased by 1.4 percent year-on-year to AUD1.79 billion (US$1.40 billion). The company said it saw a surge in VIP gambling turnover during the reporting period.
The firm posted a net profit of AUD238.6 million in its first half fiscal results, down 33.6 percent from the prior-year period, it said in a filing to the Australian Securities Exchange.
Crown Resorts operates casino properties in Melbourne (pictured), Victoria, and in Perth, Western Australia.
The casino operator reported revenue from VIP play of AUD340.1 million, a decline of 13.6 percent in year-on-year terms. The company said main gaming floor revenue rose by 0.7 percent, to AUD859.6 million, “with modest revenue growth in Melbourne offset by softness in Perth”.
The company’s VIP play turnover increased by 15.9 percent year-on-year, to AUD22.6 billion, according to Thursday’s filing.
“Crown’s Australian operations’ first half result reflected mixed trading conditions,” said the firm’s executive chairman, John Alexander, in a statement.
“The VIP programme play turnover … was a pleasing outcome, particularly at Crown Melbourne (up 37.5 percent), given the difficult trading conditions in the prior comparable period,” he added.
Crown Resorts had been known in the regional casino industry for its strength in VIP gambling, drawing customers from neighbouring Asia-Pacific countries – including China – to its properties in Australia.
But the firm’s results have been hit by the downsizing of the company’s international operations, following the arrest of a number of its employees in mainland China in October 2016.
In August last year, Crown Resorts reported that VIP turnover had plunged 39.7 percent year-on-year in the fiscal year ended June 30, 2017.
Crown Resorts’ overall results were boosted by some asset sales during the reporting period, including a net gain from significant items of AUD79.4 million, the major component being a reversal of an impairment on the Alon Las Vegas land in Las Vegas, Nevada. In December, the Australian firm said it was selling its interest in the 34.6-acre (14-hectare) vacant site on Las Vegas Boulevard to a subsidiary of casino firm Wynn Resorts Ltd, for US$300 million.
The company also said on Thursday it expected to sell its stake in horse race and sports betting brand CrownBet Pty Ltd for AUD150 million by the end of February.
Mar 22, 2018Everi Holdings Inc, a U.S.-based specialist in cash handling technology and electronic game content for the casino industry, says it has a partnership with bZillions Inc for the development of “new...
Jan 04, 2018BMM Testlabs “ticks all the boxes” with regard to its...
Dec 08, 2017The regulated casino industry is well versed in dealing...
Oct 23, 2017The presence of some of the leading cloud computing...
Jul 11, 2017The Tokyo local election setback for Japan’s governing...
Jul 06, 2017A multibillion U.S. dollar casino project on Vietnam’s...
"On March 20, 2018, Mr Wynn disclosed that he intends to sell all or a portion of the common stock controlled by him … in the open market … or in privately negotiated transactions”