Crown Resorts’ One Queensbridge Project Denied Extension by Victorian Government

CWN

Australia’s leading entertainment group, Crown Resorts Limited (ASX: CWN) has made an announcement and stating that the Victorian Government has denied an extension to the construction commencement date for the proposed One Queensbridge project.

The proposed One Queensbridge project is a 50/50 joint venture between Crown and the Schiavello Group, and this project represents Crown’s continued investment in the Southbank arts and entertainment precinct. The project is planned to be connected to the Crown Melbourne complex by a sculptural pedestrian bridge spanning Queensbridge Street which will allow Crown Melbourne to offer around 2,000 hotel rooms, which would support Melbourne’s tourism industry. The planning approval for the One Queensbridge project was granted in February 2017, and it required the construction to start by March 2019. The project was subject to obtaining financing arrangements that were satisfactory to Crown and Schiavello. Unfortunately, these arrangements could not be achieved before the construction commencement date under the planning approval.

As announced on 20 February 2019, along with its Joint venture partner, the Schiavello Group, the company had applied to the Victorian Government for an extension. However, as per today announcement, the application has been denied by the Victorian Government.

The company’s another project Crown Sydney Hotel Resort’s construction is progressing on schedule with the tower elevator core structure having been constructed to level 28, the typical hotel floor structure completed to level 16 and the south podium structure complete. It is expected that this project will be completed in the first half of CY 2021.

Recently, Crown Resorts announced its half-year results for FY 2019. For the half-year period, the company reported Normalised NPAT attributable to the parent of $194.1 Mn and reported NPAT attributable to the parent of $174.9Mn. During the first half of the year, the total normalized revenue across Crown’s Australian resorts decreased by 1.2 percent as compared to the previous corresponding period. From Crown Melbourne, the company earned normalised EBITDA of $314.9 Mn and normalised revenue of $1,118.9 Mn during the half year period. From Crown Perth, the company reported normalised EBITDA of $117.6 Mn and normalised revenue of $417.7 Mn.

For the half year period, Board of Directors declared an interim dividend on ordinary shares of 30 cents per share, 60% franked, payable on 4 April 2019.

Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $11.720, up by 1.472% during the day’s trade with a market capitalisation of ~$7.82 billion as on 4 March 2019 (AEST 01:18 PM). The counter opened the day at $11.690 and reached the day’s high of $11.850 and touched a day’s low of $11.640 with a daily volume of more than 1,002,970. The stock has provided a year till date return of -1.28% & also posted returns of -18.03%, -3.10% & -2.53% over the past six months, three & one-months period respectively. It had a 52-week high price of $14.590 and touched 52 weeks low of $11.230, with an average volume of ~1,313,740.


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