Crown Resorts Ltd
-
The company has announced its results for the full year ended 30 June 2015 and they were something of a mixed bag. Normalised NPAT attributable to the parent of $ 525.5 million was down by 17.9% over the previous year. The reported NPAT of $ 446.3 million was down 36.5% before significant items. The result was also impacted by asset impairments of the $61.3. The reported NPAT attributable to the parent of $ 385 million was down by 41.3% after significant items. The normalised EBITDA of $ 824.9 million was up by 5.4% and reported EBITDA of $ 778.1 million was down by 11.4%. Normalised EBIT of $ 562 million was up 4.5% and reported EBIT of $ 515.2 million was down 18.6%. A final dividend of $ .19 per share was declared making a total full year dividend of $ .37 per share.
Investment in large scale tourist attractions (Source - Company Reports)
-
The Australian resorts reported normalised revenue of $ 3.2 billion representing a growth of 14 %. Main floor gaming revenue grew by 5.5% to $ 1.58 billion. Non-gaming revenue of $ 664.7 million grew by 4.7%. VIP program play turnover was up 41.8% at $ 70.8 billion, normalised EBITDA was up 14.1% at $ 916.5 million and reported EBITDA was up 4.1% at $ 946.7 million. The performance of Melco Crown Entertainment was adversely impacted by weak market conditions in Macau and the company's share of the normalised NPAT at $ 161.3 million was down by $ 128.9 million or 44.6%. The company's share of the reported NPAT of $ 122 million was down by $ 165.6 million or 57.6%.
Debt Maturity Profile (Source - Company Reports)
-
The CEO Rowan Craigie said that the results from the portfolio of businesses were mixed. He was pleased with the results of Crown Melbourne with an increase of 17.8% in normalised EBITDA over the previous year though results from Crown Perth were more subdued and showed EBITDA growth of 5.5% with the help of cost reductions. Main floor gaming revenues increased by 6.9% at Melbourne but only 2.6% at Perth . The company continued to play the role of the good corporate citizen with the expansion of the award-winning Indigenous Employment Program and the work of the Crown Resorts Foundation..
Crown Melbourne
-
Normalised EBITDA was $ 662.1 million an increase of 17.8% over the previous year and reported EBITDA was $ 644.6 million up 8.6% over the previous year. The reported EBITDA figure takes into account an adverse varieace from the theoretical VIP play program which had an adverse impact of $ 17.5 million. This compares with a positive impact of $ 31.5 million in the previous year. Normalised revenue was up 15.7% at $ 2.23 billion and main floor gaming revenue was $ 1.09 billion an increase of 6.9%. Normalised VIP play program revenue was $ 706.6 million up by 41% with turnover of $ 52.3 billion. The removal of super tax effective from 1 July 2014 has improved international competitiveness. Non-gaming revenues grew by 6.6% to $ 436.7 million. Hotel occupancy at the Crown Towers Melbourne was 96% with an average room rate of $ 353.Crown Metropol Melbourne achieved 91.5% with an average room rate of $ 261. This performance reflects the very strong demand for luxury accommodation in the city.
Alon Las Vegas Project (Source - Company Reports)
Crown Perth
-
Normalised EBITDA was up 5.3% to $ 254.4 million and reported EBITDA was up 4.3% to $ 302.1 million. This result takes into account a favourable variance of $ 47.7 million on the theoretical VIP play program result compared to $ 74.1 million in the previous year. Normalised revenue was up 10.4% to $ 975.3 million and main floor gaming revenue was up 2.6% to $ 498 million. Normalised VIP play program revenue was up 44.1% to $ 249.3 million on turnover of $ 18.5 billion. Non-gaming revenues grew by 1.3% to $ 228 million. The overall normalised operating margin shrank from 27.3% to 26.1% reflecting the change business mix though this was partly offset by improvements in productivity and efficiency.
Crown Daily Chart (Source - Thomson Reuters)
Melco Crown (34.3% equity interest)
-
The company's share of normalised NPAT was an equity accounted profit of $ 161.3 million down 44.6% over the previous year. After making adjustments for a below theoretical win rate and pre-operating costs, the figure was an equity accounted profit of $ 122 million down 57.6% over the previous year. Macau is currently going through a difficult period which has adversely affected all casino operators. The overall gaming revenue in the market has declined by 26.8% with the rate of decline growing to 37% in the second half of the year. However the company believes that strong leadership from the governments of Macau and China along with the expanding and more affluent middle to upper class in China, Macau will continue to remain the most important and exciting gaming market in the world over the long term.
CWN Dividends (Source - ASX)
-
Studio City, the second largest resort in Cotai is on schedule to open 27 October 2015 within the design and construction budget of $ 2.3 billion. The company has in mind is that the operational and financial performance will depend to a large extent on the number of gaming tables allocated by the government and is concerned that they could receive materially fewer tables than requested. Despite these concerns, the company remains convinced that unique offerings will make this a unique asset.
-
City of Dreams Manila continues to see revenue growth across all business segments and the VIP program play has gained meaningful traction in July 2015. The world class array of gaming and non-gaming attractions gives this property market leadership in Manila and positions at for long-term success as Manila becomes one of the leading tourist destinations in the continent.
-
Net operating cash flow was $ 634.6 million compared to the previous year's figure of $ 702 million. The net debt position (excluding working capital cash of $ 144.3 million) as of 30 June 2015 was $ 2.465 billion consisting of total debt of $ 2.662 billion less the cash balance of $ 196.7 billion. As of the year end, total liquidity (excluding working capital cash) was $ 1.674 billion made up of $ 196.7 million in available cash and $ 1.477 billion in committed but undrawn facilities.
-
We believe that the long-term prospects of the company are promising .Macau itself is in the transition phase from VIP gaming with low margins to mass market gaming while continuing to remain one of the most potentially exciting gaming markets in the world. Studio City could well be the catalyst for explosive growth even though concerns remain about the allocation of gaming tables. Accordingly, we would rate this stock as a Buy $12.27.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation.Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product.The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
Copyright
Copyright © 2014 Kalkine Pty Ltd ABN 34 154 808 312. No part of this website, or its content, may be reproduced in any form without the prior consent of Kalkine Pty Ltd.
Kalkine is a trading name of Kalkine Pty Ltd ABN 34 154 808 312, which holds Australian Financial Services Licence No. 425376.