Crown results hit by Macau decline

n Resorts has published its full year results for the 12 months to June 30, reporting a 23% decline in normalised net profit to AUD$406.2m, on the back of continued struggles in Macau.

Actual net profit rose 146.4% year-on-year, up to AUD$948.9m, although this was boosted by the one-off sale of shares in Melco Crown Entertainment (MCE), worth AUD$602m.

Crown Resorts’ shareholder equity in Melco Crown Entertainment now stands at 27.4%, down from 37.3%.

Full-year revenue grew 3.8% to AUD$3.62bn, with $3.23bn contributed by Crown’s Australian properties, Crown Perth and Crown Melbourne.

Melco Crown Entertainment experienced a drop in net profits of 64% to AUD$58.1m, with Macau’s gross revenue from games of fortune slipping to its 26th month of decline in July.

Crown Resorts CEO Rowen Craigie said: “The 2016 full-year result reflects a solid performance from our Australian operations and continued subdued trading in Macau.

“At Crown’s Australian resorts, main floor gaming revenue increased by 5.8%, which was a solid performance.

“VIP programme play turnover in Australia of AUD$65.1bn (down 8%) was a reasonable outcome given the strong growth in the prior comparable period of 41.8% and the depressed nature of VIP gaming across Asia.

“The decline in MCE’s result was attributable to weak market conditions in Macau.

“Overall gross gaming revenue across the Macau market in the full year to June 30 2016 declined by more than 20%.”