CROWN'S BIG YEAR IMPACTED BY LOW TURNOUTS OF HIGH ROLLERS
4 August 2017, Written by David Simmons
CROWN Resorts Limited (ASX: CWN) have reported a big FY17, with net profit up 96.7 per cent to $1,866.1 million.
A final dividend of 30 cents per share has been declared, with the total full year dividend being 60 cents per share.
The Melbourne based gambling and hotel group generated $2,824.9 million in its Australian resorts, which was down 12.7 per cent from last year.
The group's big business, VIP gambling, took a dive in the FY17, with play turnover down 48.9 per cent to $33.3 billion.
The group had a big win by selling their shares in Asian gaming company Melco Resorts & Entertainment, resulting in a net gain of $1,557.2 million.
Executive Chairman of Crown, John Alexander, says the dip in revenues across the board can be attributed to the decline in VIP gamblers in Australia.
"Crown's Australian operations' full year result reflected difficult trading conditions," says Alexander.
"This decline was due primarily to the reduction in VIP program play revenue in Australia, which was down 48.9 per cent on the prior comparable period."
Crown's two major Australian presences, Melbourne and Perth, both struggled to generate income this year.
Crown Melbourne generated a reported $570.6 million, down 14 percent, which was also attributed to lower turnouts of VIP gamblers.
Crown Perth suffered a similar fate at the hands of less VIP gambling, with income down 10 per cent to $257.3 million.
The digital space was finally a success for the gambling group, who saw online social gaming operations generate $14.8 million, compared to a loss of $5.4 million last year.
Investors are not too pleased with Crown's results however, with shares in the Melbourne company currently trading nearly 4 per cent down to $12.27.
Author: David Simmons