Crown Resorts has paid a heavy price for the arrests of 18 employees in China last October, with VIP revenue for the six months to 31 December 2016 down a whopping 45.3 percent across its Australian Resorts.
In an earnings announcement early Thursday, Crown Resorts confirmed what most had suspected with VIP business copping a major hit after the company’s Chinese marketing operations were put on indefinite hold.
Total revenue across its Australian properties fell 12.5 percent for the half with “normalized” net profit down 9.1 percent to AU$191.3 million.
Executive Chairman John Alexander put the reduced figures down to “difficult conditions,” stating, “Main floor gaming revenue also decreased by 0.8 percent with modest revenue growth in Melbourne offset by softness in Perth.”
Despite this, profit for the half was actually up 75 percent to AU$359 million on the back of the company’s Macau sell-down, which added AU$167 million to Crown Resorts’ coffers.
It was also announced Thursday that CEO Rowen Craigie would step down at the end of this month, with Alexander assuming his duties.
