Crown Casino faces up to competition for VIP customers

Despite a challenging market, and especially in the face of competition from Singapores new casinos, Crown Casino has reported a final dividend of 19c, for a full-year total dividend of 37c. Shares in the company closed at $7.87, a drop of nearly 3%.

The Crown Casino group includes some of Australias most successful international attractions, chief amongst them the Crown Casino Melbourne Australia complex, which was the largest contributor to the groups earnings close to $340million in profit (an increase of 15%).

Casinos in the Yarra and in Macau performed well, but the Burswood Casino in Perth saw a 32% drop in VIP gaming revenue, and Melbournes main floor gaming revenue showed slowed growth in the first weeks of the financial year.

The loss of VIP revenue will be a worrying trend for Crown Casino, hinting as it does that Asias high rollers are being lured away from Australias venues to Singapores newly-developed casinos.

But there is confidence at Crown Casino the group has invested $1.5billion since 2007, and will spend a further $540million this year. Even more telling is the groups planned buy-back of some 30 million shares that total around 4% of Crown Casinos capital.

Crowns CEO Rowen Craigie is realistic: if youre in the high roller business you cant see a slow down. He said that Crown had strategies to bring high-worth individuals to Australia, pointing to a 15% increase in VIP gaming revenue in Melbourne, alongside strong contributions from the complexs restaurants and hotels.

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Crown Casino faces up to competition for VIP customers

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