Crown Limited has scotched speculation it is preparing to sell its stake in Macau casinos, saying it is committed to the investment because of its exposure to the flourishing Chinese market.
Crown yesterday reported a return to profit in the first half of the financial year of $115 million, as it climbs back from $1.7 billion in write-downs in recent years.
Chief executive Rowen Craigie attributed the Macau market with ''growing the pie'' of high rollers for Crown's Australian venues and said the group had no plans to get out of the area. ''We've had no negotiations with any party and we're committed to our investment in Macau,'' he said.
US casino giant Harrah's Entertainment was believed to be eyeing Crown's Macau interests.
Crown has a 32 per cent stake in Melco Crown Entertainment, which operates Altira Macau and City of Dreams. That investment gave Crown a $48 million share of Melco Crown's reported loss for the period, attributed largely to the casinos taking less from gaming tables than expected.
In Melbourne and Perth, Crown's VIP gamblers turned over a record $23.4 billion in the six months, up 23 per cent on the same period last year. The VIPs won $12 million more than they were expected to but still delivered $316 million in revenue. Growth was 1.6 per cent on the main gaming floors, which are being renovated.
Crown's total revenue for the past six months was $1.2 billion, down 0.3 per cent on the same time last year. Crown says its normalised revenue growth was 7.1 per cent.
Deustche Bank analyst Mark Wilson said the results indicated Crown was on track to achieve earnings growth of 4-6 per cent per year over the next three years.
Crown is yet to determine whether its disastrous investments in North American casinos are a total loss. They were written down to zero but chairman James Packer previously expressed his hope Crown might recover something from them. Yesterday, Mr Craigie said the US market was still ''very depressed''.
He said Crown was yet to see the effect of the new Singapore casino, and another due to open soon, and the company had formed no opinion on a proposal before the Victorian government for a second casino in Mildura.
Crown plans to open its new Metropol hotel in Melbourne next month.
Crown shares rose 17¢ yesterday to close at $8.
An 18¢ dividend franked at 60 per cent is due to be paid to shareholders on April 23.
CROWN
Profit $115 million +128%15.2¢ NA $1.2 billion -0.3%18¢steady
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