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REPORTING SEASON: Crown Resorts Limited (CWN)

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Figure 1: Crown Resorts Limited Ltd 12 month chart

 

Crown Resorts’ earnings boosted by Macau interest

·         Crown Resorts (CWN), Australia’s largest listed gambling and gaming company posted a better than expected FY14 net profit of $655.7m

·         Its 33.6% stake in Macau’s Melco Crown Entertainment drove profit growth, with earnings up by 91% over the year although the last quarter was soft. The outcome from its Australian assets was held back partly by a more conservative consumer (7% slump in consumer confidence levels over the past 12 months). Crown Melbourne’s contribution to earnings still rose slightly to $382.2m, while Crown Perth’s bottom line fell by 1.7%

·         A 2H14 (final) 50% franked dividend of $0.19 per share was declared, payable to eligible shareholders on 10 October.

·         Keep in mind that the FY13 result was sluggish due to a $70m loss from the sales of its interest in rival Echo Entertainment (EGP). EGP posted a $106.3m FY14 yesterday

·         In recent weeks CWN purchased a 34 acre site on Las Vegas Boulevard for US$280m to build a casino. Yesterday CWN paid US$10m to take control of betting business Betfair Australasia. The joint venture was formed in 2004 with the UK’s Betfair Group. Construction of its planned 6-star hotel complex in Sydney’s Barangaroo is continuing. Last month CWN received the OK to operate Sydney’s 2nd casino from Nov 2019.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Steven Daghlian, Market Analyst,