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.