Crown Perth earnings drop

Crown Resorts has posted a $192.4 million net profit for the half year, with earnings at the Perth arm of the company down on the previous year.

Normalised earnings before interest, tax, depreciation and amortisation at Crown Perth was $128.7 million, a 5.1 per cent drop from last year.

However, this figure does not include a $15.9 million boost to earnings from the VIP program play, which takes reported earnings to $144.7 million, up 11.3 per cent on the previous year.

In Perth, normalised revenue was down 3 per cent to $427.5 million, with a 3.3 per cent drop in main floor gaming revenue, while non-gaming revenue grew 20.8 per cent, primarily due to the addition of Crown Towers.

Overall the company’s net profit rose 0.6 per cent, driven by an 11.2 per cent surge in normalised earnings to $447.7 million.

Executive chairman John Alexander said the results reflected mixed trading conditions.

“Total normalised revenue across Crown’s Australian resorts increased by 4.8 per cent on the prior comparable period,” he said

“Main floor gaming revenue increased by 0.7 per cent, with modest revenue growth in Melbourne offset by softness in Perth.

“VIP program play turnover in Australia of $22.6 billion (up 15.9 per cent) was a pleasing outcome, particularly at Crown Melbourne (up 37.5 per cent), given the difficult trading conditions in the previous corresponding period.”

Shares in Crown finished up 4.4 per cent at $13.05 each.