Crown profit drops 15.5%

CROWN Resorts Limited this morning unveiled a $343.1 million “normalised profit” for the year to 30 Jun, a drop of 15.5%.

However after significant items the overall result was a profit of $1.86 billion, up 96.7%, taking into account a $1.56 billion gain on the sale of shares in Macao- based Melco Resorts.

Normalised revenue at Crown’s Australian resorts dropped 12.7% to $2.84 billion, with main floor gaming revenue dipping to $1.6b.

Non-gaming revenue in Australia amounted to $718.5 million, up 6.5% for the year.

Executive chairman John Alexander said the full year result reflected difficult trading conditions, particularly in the gaming segments of the business.

Crown Towers Melbourne recorded an occupancy rate of 96.7% with a $375 average room rate, while Crown Metropol occupancy was 92.2% and Crown Promenade Melbourne’s occupancy was 93.4%.

“These high occupancy rates reflect the very strong demand for luxury hotel accommodation in Melbourne,” the company said.

Non-gaming revenue at Crown Perth rose 11.2% to $246.7m.

Hotel occupancy at Crown Towers Perth, which opened last Dec, was 58% with an average room rate of $322.

Crown Metropol Perth occupancy was 85.2% while Crown Promenade Perth recorded a 91.4% occupancy rate.

The results announcement said the Crown Sydney Hotel Resort at Barangaroo is on schedule, with completion expected in 2021.

The company also confirmed that billionaire James Packer had returned to its board, after standing down in Dec 2015.