Crown increases its net profits

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Credits: The Wall Street Journal.

The casino company from Australia informed that the sale of its Melco stake helped achieve a net profit increase.

Australia.- Crown Resorts Ltd reported late on Friday during a filing to the Australian Securities Exchange that net profits were up 96.7 percent compared to the last fiscal year to US$1.44 billion. The impressive numbers were registered even with a decline in revenue for the period ending on June 30.

The firm said that the increase in profit by US$1.3 billion happened because the company got rid of its stake in the casino developer Melco Resorts and Entertainment Ltd, as GGRAsia reported. The Australian based company revealed in May that it completed the disposal of the remaining stake in Melco, and that the action would bring net proceeds of nearly a billion dollars, and the company would direct that money to pay and reduce existing debts. Without that number, the profit would have been 15.5 percent down year-on-year.

Moreover, Crown announced that the revenue for the twelve months that ended on June 30 was 7.5 percent down to US$2.6 billion, specially because of a VIP segment decrease, as well as gaming revenue. “Crown’s Australian operations’ full year result reflected difficult trading conditions,” said John Alexander, Crown’s executive chairman. He also confirmed that total normalised revenue cross Crown’s Australian resorts declined by 12.7 percent, and that the decline was due primarily to the reduction in VIP programme play revenue in Australia.