Crown Resorts VIP business jumps 54.4 percent

Crown Resorts reported an almost 13 percent increase in normalized profit after tax for the year ending June 30th, fuelled by a 54.4 percent surge in VIP program play turnover.

Normalized profit was $386.8 million ($286.7 million). Reported net profit after tax fell 70 percent to $558.9 million. The prior year figure was inflated by the sale of Crown’s stake in its Macau joint venture with Melco Resorts & Entertainment. This year’s net was boosted by $232.2 million from the sale of its CrownBet and Ellerston units, as well as the reversal of an impairment on Alon Las Vegas land.

“Crown’s full year result reflects a solid performance from our Melbourne operation and continued subdued trading in Perth,” Crown Executive Chairman John Alexander said in a statement to the Australian Stock Exchange. “Total normalized revenue across Crown’s Australian resorts increased by 10.6 percent on the prior comparable period. Main floor gaming revenue increased by 1.5 percent, with modest growth in Melbourne offset by softness in Perth.

VIP program play turnover in Australia of $51.5 billion was a pleasing outcome, particularly at Crown Melbourne (up 73.9 percent), given the difficult trading conditions in the pcp.”

VIP was down sharply the prior year as high rollers kept a low profile amidst a crackdown on corruption in China and after Crown employees were detained on the Mainland for alleged gambling offences.

Crown said its VIP-only casino in Barangaroo, Sydney, remains on schedule for completion in the first half of 2021, with a total gross project cost estimated at $2.2 billion.

The company also said it has begun legal proceedings against the Barangaroo Delivery Authority (BDA) in the Commercial List of the Supreme Court of New South Wales.

The proceedings aim to ensure the BDA comply with contractual obligations, including consulting with Crown on any applications for development that differ from the concept for the area in existence when the company first agreed on the project.

It wants in particular to ensure that sight lines from the Harbour Bridge to the Sydney Opera House are retained for the Crown Sydney Hotel Resort