The latter half of 2015 saw a decline in Crown Resorts’ profits, with net income plummeting by 24% compared to the corresponding period the previous year. This resulted in a reduction of their after-tax earnings to $200.7 million in Australian currency.
However, there were some silver linings. The corporation experienced an uptick in revenue, with total revenue surging by 10% to $1.87 billion Australian, while earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a robust 13% increase, reaching $4.559 billion Australian.
The company attributed the results of its Melco Crown Entertainment (MCE) investments to the “muted market conditions in Macau,” which encompasses their hotel/casino in Macau and City of Dreams Manila in the Philippines. Crown’s portion of MCE’s adjusted net profit after tax contracted by 66%, settling at $37.2 million Australian.
Analyzing the adjusted figures, which exclude factors such as theoretical win rates from VIP initiatives, pre-opening expenses of MCE, and impairments from the preceding year, a comparable pattern emerges. Profits, as measured by net profit after tax, dwindled by 36% to $206 million Australian, and EBITDA contracted by 6% to $424.4 million Australian. Conversely, revenue painted a more optimistic picture, expanding by 8% to $1.85 billion Australian.
Crown CEO Rowen Craigie emphasized the favorable aspects, remarking, “Main floor gaming revenue at our Australian resorts rose by 9.8%, representing a commendable performance.” He further elaborated on the decrease in VIP program revenue, which dipped by 3.8% to $357 million Australian, stating, “This is a satisfactory outcome considering the significant 61.4% growth achieved in the prior comparable period and the restrained climate for VIP program participation across Asia.”