Crowns net profit falls

Crowns net profit falls

Crown Resorts Limited saw a fall in net profit after tax of 24% as of 31 December 2015.

One of their strong income generators was based on the performance of Melco Crown Entertainment. This includes the Macau Hotel/Casino properties and the City of Dreams in Philippines. They stated that the drop in revenue from these venues was due to “weak market conditions in Macau”. These properties showed a fall in net profit after tax of 66%.

The figures have been broken down to normalized and actual. The normalized numbers showed the same figures 36% to A$206m, EBITDA slipping 6% to A$424.4m and operating revenue rising 8% to A$1.85bn.

Crown CEO Rowen Craigie said: “Main floor gaming revenue at our Australian resorts increased by 9.8%, which was a solid performance. VIP programme play turnover in Australia of A$35.7bn (down 3.8%) was a reasonable outcome given the strong growth in the prior comparable period of 61.4% and the depressed nature of the VIP programme play market across Asia.”

The Crown Resorts Limited is one of Australia’s biggest gaming and entertainment groups. Established in 2007, the company attempted to enter the US market, but failed and made a loss of $800 Million. Crown Resorts next project was to enter Sri Lanka by 2015. However, this project failed due to a change in Government. The casino chain currently has many successful joint ventures in Macau, United Kingdom, Nevada and Western Pennsylvania.