Crown Resorts ‘below expectations’ in first-half despite revenue growth
Australian entertainment group Crown Resorts said its performance during the six months through to December 31, 2013 was “below expectations” despite having recorded growth in the period.
The firm recorded operating revenue of AUS$1.6 billion (€1 billion/$1.4 billion) in the first half of 2013, a 3.3% increase in the AUS$1.5 billion achieved in the same period of the previous year.
Net profit was also up 111.6% from AUS$180.8 million in 2012 to AUS$382.5 million in the first half of 2013.
In addition, earnings before interest, tax, depreciation and significant items at the group amounted to AUS$479 million for the first half, an increase of 26.8% on the AUS$377.7 million posted in the same period last year.
Crown Resorts put the majority of this success down to Melco Crown Entertainment, in which it has a 33.6% equity interest.
However, weak performances at the group’s Crown Melbourne and Crown Perth properties meant that the group was unable to meet its expected targets.
Rowen Craigie, chief executive officer of Crown Resorts, said that the results had reflected the state of local economies in the country.
“Overall, we have seen weak consumer sentiment that has adversely impacted trading at both Crown Melbourne and Crown Perth,” Craigie said.
“The results for those resorts were below expectations and reflect the fact that their local economies are experiencing structural and cyclical challenges.”