The company wholly owns and operates two integrated resorts; the Crown Entertainment Complex in Melbourne and Burswood Entertainment Complex in Perth. Mr James Packer currently owns a 50.1% stake in the group.
CWN also has an interest in several different projects including:
|>>||33.7% interest in Melco Crown Entertainment (MCE), which is based in Macau|
|>>||50% interest in online gambling site Betfair|
|>>||24.5% interest in Cannery Casino Resorts in the US|
|>>||50% interest in Crowns Aspinall’s (UK) which operates three regional casinos in Newcastle Swansea and Northampton|
FY13 results showed solid operations at Australian business:
|>>||Normalised operating revenue grew 5.6% to $2.89 billion|
|>>||Net profit before significant items came in at $473.2 million, a 14% jump on FY12|
|>>||The groups’ total dividends over the year were 37 cents a share, fully franked, which was in line with the previous year’s payment|
|>>||The groups EBITDA margins were very impressive, especially in Melbourne where it grew 140 basis points in the 2H13 to 28.5%. The expanding margins a result of a continued cost-out focus and came despite a negative margin mix shift between higher proportion of VIP play relative to the main floor|
|>>||The group’s recent refurbishment of the Burswood casino started to pay benefits, with main floor gaming growth of 9.7%. This result especially pleasing given the weakening Perth consumer environment|
CWN’s FY13 operating results were solid and we expect more of the same in the coming year.
We anticipate mid-digit growth for its Australian business, with the key drivers being a full year of cost cutting benefits at its Melbourne casino and continued refurbishment benefits at its Burswood complex.
In regards to its MCE business we are expecting an extremely strong year. It’s Macau City of Dreams has been undertaking a change in product mix, with a higher emphasis on the mass markets tables over VIP tables.
We believe expect this new product mix to the higher margin mass market table will lead to a solid increase in profit.