Crown Resorts Announces Results for Half Year Ended Dec’18 –  Shares plummet by 5.33%

The Southbank, Australia-based Crown Resorts Limited (ASX: CWN) operates as a well-known entertainment and gaming company with operations and investments spanning worldwide across the United Kingdom, Asia, the United States as well as Australia. Its four principal business segments comprise, Crown Aspinalls, Wagering & Online, Crown Perth and Crown Melbourne.

Recently, the company announced results for the 2019 Half Year ended December 31st, 2018. As for the Crown Resorts Limited’s performance, the overall normalised NPAT attributable to the parent stood at $ 194.1 million, up by 0.9%. Also, the reported NPAT attributable to the parent was at $ 174.9 million, up 9.9% before significant items in the prior comparable period (pcp). However, it was down 26.7% after including substantial elements in the pcp. The company also posted normalised EBITDA of $ 418.8 million, down 6.5% on pcp while the reported EBITDA stood at $ 391.8 million, down 2.1%. Meanwhile, the Normalised EBIT was at $278.4 million, down 6.5% and the reported EBIT of $ 251.4 million was up 0.4% on pcp. The company also paid out an interim dividend of 30 cents per share.  

The first half for Crown’s Australian operations was full of mixed trading conditions, as reported. The total normalised revenue across resorts in Australia was recorded to be $ 1,536.7 million, indicating a decline of 1.2% on the prior comparable period. The revenue from the main floor gaming unit increased by 0.9%, reflecting a modest growth in Melbourne offset by subdued conditions in Perth. Besides, the VIP program play turnover across Australian resorts was at $ 19.9 billion, down 12.2% after a slow November and December. The revenue from non-gaming sources stood at $ 400.9 million, up 2.8% along with a normalised EBITDA of $ 432.5 million, which also fell by 4.7%. However, the reported EBITDA of $ 408.9 million was up by 0.5% on the prior comparable period.

The respective revenues from the segments also experienced declines. For the Crown Melbourne business, the normalised revenue of $ 1,118.9 million was down 0.8%, and the normalised EBITDA was at $ 314.9 million, down 3.2% on the prior period. Besides, the reported EBITDA for the period was recorded at $ 271.3 million, up 3.5%, which includes an unfavourable variance from the theoretical VIP program play result that had a negative EBITDA impact of around $ 43.6 million.

In addition, the Crown Perth business segment contributed normalised revenue of $ 417.7 million down 2.3% on the prior period while the same from the Crown Aspinalls business was recorded at $ 6.2 million, down 36.4%.

The company’s wagering and online social gaming operations consist of Betfair Australasia, wholly owned online betting exchange and DGN Games, online social gaming business with an 855 stake. The EBITDA from this segment was recorded at $ 7.5 million, down 14.7% on the prior period.

The company also released two calculated financial ratios for the six months ended December 31st, 2018, comprising Interest Cover Ratio at $ 26.6 million and Leverage Ratio at $ 0.9 million.

As of date, Crown Resorts Limited has a market capitalisation of $ 8.26 billion and ~ 677.16 million outstanding shares. With the close of the trade session on February 20th, 2019, the last sell-off price for the CWN stock was $ 11.550, down 5.328%, indicating an intra-day fall of $ 0.650.


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