Crown records profit growth, up 130%
Casino operator Crown has posted annual profit up 129 per cent and says trading in both its Australian casinos has lifted in the early part of the new year.
Crown said on Thursday comprehensive income for the year to June 30 was $255.131 million, up from a net loss of $893.829 million in 2008-09.
Crown shares ended the day up 25 cents, or 3 per cent, to $8.49.
Net profit from continuing operations was $292.293 million, up 124.4 per cent on 2008-09.
Crown said its normalised net profit was $288.4 million, up 2.7 per cent on the prior year.
Revenue was up 1.9 per cent at $2.342 billion.
Crown declared a final dividend of 19 cents, 11.4 cents franked, steady with the prior year.
Crown described its results, in a statement, as "reasonable".
"Our local casino operations were adversely impacted due to a softening in consumer sentiment and corporate hospitality spending and a greater than expected impact of refurbishment works" at Crown's two Australian casions, Crown in Melbourne and Burswood in Perth, the company said.
"Specifically, premium table revenue at Crown Melbourne and main floor gaming revenue at Burswood were impacted by major renovations."
So far in the new year, Crown said, trading at both casinos was higher.
"Trading across both properties for the period from 1 July, 2010, to 18 August, 2010, (7 weeks), relative to the pcp, saw main floor gaming revenue grow by approximately 4 per cent.
"Non-gaming revenue grew by approximately 14 per cent, principally due to the impact of Crown Metropol.
"VIP program play volumes have started the year encouragingly."