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


Related Articles

Covid-19 turns out lights in most of Asia’s casinos

From India to Australia, casinos across the Asia Pacific region have closed their doors in response to efforts to combat the spread of the coronavirus, with little to no visibility at present as to the evolution of the situation.

Packer spokesperson denies NYE meeting with Adelson

A spokesperson for James Packer has reportedly denied that the Australian billionaire met with Sands China Chairman Sheldon Adelson over the New Year holidays. The super yachts of the two casino executives were moored next to each other, triggering speculation. 

Crown Resorts tightens money transfer requirements

Crown Resorts has introduced new requirements for gamblers who want to transfer funds to the casino giant, which is scrambling to improve compliance before an urgent review of its Victorian license by the state government.
Crown Barangaroo

Crown Sydney opens with no casino, amidst new NSW Covid outbreak

Crown Resorts opened the doors to its $2.2 billion ($1.66 billion) Crown Sydney property on Monday, but without the fanfare that accompanies the openings of such mega projects after a bruising year of suitability hearings and amidst a new cluster of Covid-19 cases in the city.

James Packer sued by former Crown Resorts security guard

A former security guard at Crown casino is pursuing James Packer for aggravated damages in the Supreme Court over allegations the billionaire assaulted him before threatening to have him sacked.
Crown Resorts

Crown suitability review brought forward in Victoria

Crown Resorts is facing more regulatory scrutiny after the Victorian Gaming Minister said she was fast-tracking the regular review of its suitability to hold a casino license and appointing a special commissioner to oversee the process.

Crown Sydney gets temporary liquor license, to open December 28

Crown Resorts said the New South Wales Independent Liquor and Gaming Authority has granted a temporary liquor license to its Crown Sydney property until April 30, 2021 and therefore several non-gaming amenities will open from 28th December.

Crown Resorts whistleblower taking the firm to court

A former Crown Resorts employee who exposed the company's conduct in China and helped spark a powerful inquiry in New South Wales says she is ready to take her fight against the gambling empire to the Supreme Court.

Crown Resorts faces lawsuit over lower share prices

Leading law firm Maurice Blackburn Lawyers has lodged a new class action against Crown Resorts alleging the company’s governance and risk management failings caused a massive share price plunge in October.
AUSTRAC probe raises the stakes for Crown Resorts

AUSTRAC urges casinos to mitigate junket risk

Australia’s top anti-money laundering watchdog has released an in-depth report into junket operators, concluding they are highly vulnerable to criminal activity and that casinos need to do more to mitigate the risks.