Crown Resorts post huge drop in VIP revenues for 2016
Australia’s Crown Resorts which is controlled by billionaire James Packer reported annual results showing a $359 million net profit after tax that represents a 75% increase from last year. However that result does not reflect the true picture as the figure includes the sale of their shares in Melco Crown Entertainment.
Without that sale profits were actually down 9% to $191 million with revenues being the main factor in the fall of profits. In the companies flagship casino in Melbourne VIP revenues were down a huge 47% and in Perth the VIP revenue figure was down 39%.
The massive drop in VIP revenues is down to the Chinese governments crack down on money laundering and taking money out of the country.
It was a difficult year for Crown which will see its long serving CEO Rowan Craigie stepping down after 25 years and being replaced by John Alexander.