REPORTING SEASON: Crown Resports (CWN)
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Figure 1: Crown Resorts 12 month chart
Crown Resorts (CWN) beat expectations despite weak Macau business
Crown Resorts (CWN) posted a much better than expected half year profit result of $322.3m for the six months ended 31 December 2014.
Profit was driven by Crown’s Melbourne and Perth casinos, which are the gaming company’s two biggest earners. In particular its Crown Melbourne VIP business was a standout with revenues rising by 86%; surprising the market. Crown Melbourne accounts for close to 80% of the group’s total income.
Weak market conditions in Macau held back the result most. Melco Crown (the group’s Macau joint venture) produced an $85.3m half year profit; a 42.2% fall on the previous corresponding period. Considering the weakness in Macau, the slight rise in overall earnings was perceived positively by the market.
CWN will be paying out a $0.18/share interim dividend to eligible shareholders on 10 April 2015. The dividend will be 50% franked.
No financial guidance was provided by Crown. Melco’s second resort in Cotai remains on track to open later this year.