• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Saturday 24 May 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Crown Misses on Weak Domestic Play

Newsdesk by Newsdesk
Tue 25 Feb 2014 at 00:54
1
SHARES
23
VIEWS
Print Friendly, PDF & Email

Good thing for James Packer that Macau exists because his home markets in Australia are  struggling to overcome the effects of a down economy and intensifying competition for high-rollers.

Mass-market gaming revenue for Mr Packer’s Melbourne-based Crown Resorts dipped 0.6% to A$757.7 million in the six months ended 31st December.

“We have seen weak consumer sentiment” that’s hurt trading, said Rowen Craigie, chief executive of ASX-listed Crown. “Their local economies are experiencing structural and cyclical challenges.”

The company was able to grow EBITDA by 27% to $479 million in the half on group revenue that rose only 3.4% to $1.56 billion. Turnover from VIP gamblers slumped 26% to $23 billion and was down 33% at the company’s flagship Crown Melbourne amid what the company described as “competitive challenges”.

“It’s slightly worrying what’s happening in the VIP market,” Killian Murphy, an analyst at CIMB Group Holdings in Sydney, told Bloomberg. “The casinos round the region are all very competitive and it’s a small pool of players.”

Australian casino companies are counting on growing demand from high-spending Chinese and other Asian tourists to justify more than A$2 billion in investments in new hotels and casinos. Crown has committed $1.3 billion to a luxury resort aimed at VIPs on Sydney’s Darling Harbour to compete with Echo Entertainment’s The Star, the locus of $870 million in reinvestment over the last few years designed to enlarge its share of that same market.

Crown saw net income more than double year on year to A$382.5 million in the half, but it fell short when adjusted for volatility of the $328.7 million median forecast of four analysts polled by Bloomberg News.

And more than 40% of it was generated from Crown’s one-third stake in Macau casino giant Melco Crown Entertainment, a return that more than doubled over the first half of 2012.

“The domestic side is tracking OK at best, given the weak consumer environment,” said Theo Maas of Arnhem Investment Management in Sydney. “The real growth is coming from Macau.”

It was enough to enable the company to declare a 50% franked dividend of 18 cents, even with last year’s interim payout.

More good news for Mr Packer, who owns just over 50% of Crown and will pocket $65.6 million.

The dividend will be paid on 11th April.

 

 

 

RelatedPosts

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

Wed 9 Apr 2025 at 06:16
Trade union warns massively increased casino pokies tax in NSW will cost jobs

Pub baron Bruce Mathieson agrees additional AU$100 million Star investment, reduces Bally’s contribution to AU$200 million

Wed 9 Apr 2025 at 05:40
10 years ago: China Syndrome

Bally’s acquisition of Star described as risky with likely need for further capital investment

Tue 8 Apr 2025 at 06:18
Death by a thousand cuts

Star Entertainment Group agrees AU$300 million rescue deal with Bally’s

Mon 7 Apr 2025 at 13:23
Load More
Tags: AustraliaCrown MelbourneCrown ResortsJames Packer
ShareShare
Newsdesk

Newsdesk

Current Issue

Editorial – The real reason Philippines casino revenues are down

Editorial – The real reason Philippines casino revenues are down

by Ben Blaschke
Sun 30 Mar 2025 at 23:04

After enjoying a post-COVID surge in gaming revenues at its licensed casinos, the Philippines has hit a rocky patch. In...

Inside Thai IRs

Inside Thai IRs

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:59

No time to read this whole article? Here are the bullet points! With passage of Thailand’s Entertainment Complex Bill through...

Resorts World Las Vegas – Lighting up the north

Resorts World Las Vegas – Lighting up the north

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:52

Inside Asian Gaming recently visited Genting’s American icon Resorts World Las Vegas to take a closer look at a property...

A baccarat perspective

A baccarat perspective

by Ryan Hong-Wai Ho
Sun 30 Mar 2025 at 22:37

In the first of a two-part series, Ryan Ho explores how gaming innovations and market changes have shaped the prominence...

Evolution Asia
Aristocrat
GLI
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

by Newsdesk
Wed 9 Apr 2025 at 06:16

Star Entertainment Group confirmed Monday it had entered into a binding term sheet with US casino operator Bally’s Corp to take control of the company as part of a US$300 million (US$180 million) deal. The term sheet, comprising a multi-tranche...

China-owned contractor of Chow Tai Fook’s Baha Mar ordered to pay US$1.6 billion to original owner for “many acts of fraud”

New York appellate court dismisses China Construction America’s appeal in US$1.6 billion Baha Mar fraud case

by Ben Blaschke
Wed 9 Apr 2025 at 05:59

A New York court has dismissed an appeal by China Construction America, Inc (CCA) against a Supreme Court ruling in October requiring it to pay US$1.6 billion to the original owner of Bahamas casino resort Baha Mar for committing “many acts...

Trade union warns massively increased casino pokies tax in NSW will cost jobs

Pub baron Bruce Mathieson agrees additional AU$100 million Star investment, reduces Bally’s contribution to AU$200 million

by Ben Blaschke
Wed 9 Apr 2025 at 05:40

Star Entertainment Group’s largest individual shareholder Investment Holdings Pty Ltd has entered into a binding term sheet with US casino operator Bally’s Corp that will see it subscribe for AU$100 million (US$60 million) in convertible bonds, reducing in the process...

RWLV names former MGM executive Greg Shulman as EVP of International Marketing

RWLV names former MGM executive Greg Shulman as EVP of International Marketing

by Newsdesk
Wed 9 Apr 2025 at 05:35

Genting Group’s US flagship Resorts World Las Vegas (RWLV) has announced the appointment of casino industry veteran Greg Shulman as Executive Vice President of International Marketing. Continuing the property’s recent management overhaul, RWLV said Shulman will lead its international casino...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English