Billionaire James Packer’s Crown Resorts has missed the jackpot with its first half profits tumbling down 26.7 per cent to $174.9 million amid difficult trading conditions across the high-end casino market.
Australia’s biggest casino operator posted a normalised profit up slightly to $194.1 million. Crown’s total revenue declined of 7.3 per cent to $1.47 billion, for the six months to December 31.
Turnover from its VIP program of $19.9 billion fell 12.2 per cent over the six months, following weaker trade through November and December.
‘Crown’s Australian operations’ first half result reflected mixed trading conditions,’ executive chairman John Alexander said.
‘Main floor gaming revenue increased by 0.9 per cent, with modest revenue growth in Melbourne offset by continued softness in Perth,’ Mr Alexander said.
The company said construction of Barangaroo’s Crown Sydney Hotel luxury resort remains on schedule for completion in the first half of 2021.
In December Crown resorts scored a major win in its legal battle with the NSW government over planned development that would have obstructed views of the Sydney Opera House and the Harbour Bridge from its casino and new hotel.
The company will pay an interim dividend of 30 cents, of which 60 per cent is franked.
At 11:10 AEDT Crown shares were down 5.82 per cent to $11.49 on Wednesday.
CROWN RESORTS FIRST HALF PROFIT DOWN
* Net profit down 26.7pct to $174.9m
* Revenue down 7.3pct to $1.47b
* Interim dividend 30 cents, 60pct franked,