Crown Resorts sees revenue fall 5% for H1 of financial year

Crown Resorts sees revenue fall 5% for H1 of financial year

Crown Resorts revenue was AU$1.46bn (US$977.8m) for the six months ending 31 December 2019, down 5% year-on-year.

The operator saw profit of AU$172.7m, a drop of 11%, while EBITDA was AU$381.3m, down 9%.

Main floor gaming revenue was AU$872.9m, up 1%, and non-gaming revenue was $408.2m, a rise of 2%.

VIP program play turnover was down 34%, at AU$13.1bn, with the operator attributing this decrease to “a continuation of softer market conditions, exacerbated by recent negative publicity.”

Despite this, VIP program revenue was up 9% from the previous year, with Crown Resorts benefitting from “theoretical win rate” on VIP turnover.

Crown Melbourne saw the operator’s highest revenue, at AU$1.03bn, but this was down 8% from the previous year.

During the period, Crown Resorts redeemed its Australian medium-term notes, which reduced its gross debt by approximately $259m.

In the report, Ken Barton, CEO of Crown Resorts, described difficulties created by the coronavirus outbreak, which resulted in travel restrictions and general community uncertainty, particularly over the Lunar New Year period.

In January, John Alexander stepped down from his role as Executive Chairman amid an inquiry into the company’s operations.

The inquiry is currently looking into a number of allegations filed against the operator, including money laundering and the breach of its gambling license.

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