Crown cites ‘difficult trading conditions’ as key figures fall

Crown Resorts reported year-on-year losses across a number of key financial metrics for the 12 months through to June 30, with the firm citing “difficult trading conditions” throughout the year as the main reason behind this decline.

Normalised net profit after tax (NPAT) at the Australia-based casino operator came in at Aus$343.1m (€231.1m/US$271.8m), down 15.5% on the previous year.

The firm also said that normalised earnings before interest, tax, depreciation and amortisation (EBITDA) fell 3.3% year-on-year to Aus$828m.

Crown noted that normalised results have been adjusted to exclude the impact of any variance from theoretical win rate on VIP programme play at various casino sites and significant items.

In terms of reported results, NPAT before significant items totalled Aus$308.9m, down 21.5%, but after significant items, this figure stood at Aus$1.89bn, which is 96.7% more than in the previous year.

Reported EBITDA dropped 8.3% year-on-year to Aus$790.3m, while reported EBIT fell 14.7% to Aus$493.5m

John Alexander, chief executive of Crown, said: “Total normalised revenue across Crown’s Australian resorts declined by 12.7%; this decline was due primarily to the reduction in VIP programme play revenue in Australia, which was down 48.9% on the prior comparable period.

“Main floor gaming revenue also decreased by 1.4%, with Melbourne flat and softness in Perth.

“The group result also includes a net gain from the sale of Crown’s interest in MRE of approximately Aus$1.7bn, which is reported as a significant item.”

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