Australian gambling operator Crown Resorts posted information about its full-year financial performance as James Packer announced that he is to step down from his position as Chairman of the company.
Crown Resorts reported a 41.3% drop in net profit to A$385 million for the fiscal year ended June 30, 2015. The decrease was mainly attributed to its Macau investments and a considerable write-down of its overseas investments.
Excluding the high rollers effects, the costs related to the opening of Studio City, and certain asset impairments, net profit dropped 17.9% to A$525.5 million. The gambling operator’s financial results were also impacted by a A$61 million impairment charge related to its Cannery project in Las Vegas.
Crown Resorts’ Australian gambling properties performed relatively well. Earnings increased 4% year-on-year to A$947 million. A 14% increase in revenue was also posted. The company’s Australian casinos generated a total of A$3.2 billion over the period in review.
However, proceeds from Melco Crown Entertainment, a joint venture between Crown Resorts and Lawrence Ho’s Melco International Development, were severely hit. The Australian operator’s share of profits from its jointly operated Macau-based casino decreased 58% to A$122 million.
Commenting on the posted results, Rowen Craigie, Chief Executive Officer of Crown Resorts, described them as “mixed” ones. Mr. Craigie also said that the difficulties Macau is currently experiencing have affected all casino companies that operate venues in the administrative region. Yet, he expressed hopes that both Macau and Mainland China officials will take due measures to help the city’s struggling gambling industry.
The announcement about Crown Resorts’ dropping profits came at a time when Chairman James Packer revealed that he is to step down from his post. The Australian businessman will remain a board member. As the operator’s majority shareholder, Crown Resorts also announced it is planning to appoint him as Senior Executive Director.
Furthermore, Mr. Packer will remain Co-Chairman of the company’s Asian business Melco Crown as well as Las Vegas-based one – Alon Resort.
The businessman said in a statement from earlier today that Crown Resorts will remain his top “priority and passion” and that he will continue to drive the operator’s major projects, including Melco Crown’s venues across Asia and the planned Las Vegas Cannery resort.
Mr. Packer also pointed out that he will keep on working on the improvement of Crown Resorts’ online operations. He considers the online gambling segment one that is to provide his company with “great potential” for a future global growth.
Harold Mitchell, Non-Executive Director at the Australian gambling operator, commented that Mr. Crown stepped down from his post for family reasons. It seems that the businessman wants to spend more time with his children who currently reside in Los Angeles.
Robert Rankin will replace Mr. Packer as Chairman of Crown Resorts.
