Crown Resorts net profit drops 4.7 pct y-on-y in FY19 as VIP results go down

Meanwhile, the total revenue generated in that period fell by 5.4 per cent year-on-year as VIP results – mainly generated by Chinese players – dropped by a considerable 26.1 per cent to A$38 billion, whereas main floor gaming revenues went up 0.5 per cent year-on-year to some A$1.6 billion.

Crown Resorts wholly-owns and operates two of Australia’s leading integrated resorts, Crown Melbourne Entertainment Complex and Crown Perth Entertainment Complex, plus the Crown Aspinalls property in London.
In June of this year, Melco Resorts & Entertainment Limited announced that it has purchased a 19.99 per cent stake in Australian gaming operator Crown Resorts for some A$1.75 billion.

The group’s CEO, Lawrence Ho Yau Lung, is currently undergoing a probity review by Australian gaming authorities so he can be included as a board member in Crown, with Australian authorities also announcing a separate inquiry to assess the deal.

In July, the gaming operator was recently the target of a joint report by Australian media The Age, The Sydney Morning Herald and Channel 9 news segment 60 Minutes – all part of the Australian media conglomerate Nine Entertainment – which alleged, among other things, that Crown Resorts had helped a Chinese criminal syndicate to launder money and eased fast-track visa procedures for Chinese high rollers.

The reports also questioned the gaming operator’s business ties with junket operator Suncity, due to perceived connections to criminal activities, with the New South Wales gaming watchdog announcing an independent examination of Crown’s junket connections, while the Australian Criminal Intelligence Commission (ACIC) is conducting an investigation on the infiltration of organised crime in local casinos.

Crown Resorts and Suncity have denied all allegations by the media group, with Suncity’s Chairman Alvin Chau having also threatened the Fairfax group with litigation if retractions on the report are not published.

This week the Suncity Group also announced it will close its VIP rooms at the properties of Australian gaming operators Crown Resorts and Star Entertainment, justifying it as a purely commercial decision that was in no way influenced the recent media reports.