Crown reported a 32.9 % rise in net profit to US$ 153.14 million

Normalized net profit, which takes into account variations in the theoretical win rate against VIP gamblers and pre-opening costs in respect of the jointly owned City of Dreams casino resort in Macau, was 13.9 % higher at US$165.8 million. VIP revenue fell 8 % to US$290.8 million due to the effect of the opening of two new casino-resorts in Singapore.
Crown CEO, Rowen Craigie, told reporters that the VIP market was growing strongly, evidenced by the uplift of the VIP market in Macau.

“Facility upgrades in progress at Crown and Burswood would help boost Crown’s share of VIP numbers. The casinos operated by Crown also had to concentrate on providing quality service, and Crown had to ensure that it had the right sales teams in place in key markets to convince rich gamblers to come to Australia,” Craigie said.

Craigie said many VIP gamblers from South-East Asia were now choosing to play locally, and some of Crown’s key VIP customers were spreading their time between Macau, Las Vegas, Australia and Singapore.

He said an upgrade of facilities by Australian rival casino operator Tabcorp would also make a visit to Australia by VIP gamblers a more attractive proposition.

The company also announced that it had received regulatory approval in Nevada and Pennsylvania in the Unites States to convert a preferred instrument held in Cannery Casino Resorts into equity. Upon conversion, Crown will hold a 24.5 % share in Cannery.

Craigie said that once the conversion took place, Crown would be entitled to share in any profit distribution and a seat on Cannery’s management committee. Crown CFO, Ken Barton, said the Cannery investment was valued in Crown’s books at US$60 million.

The firm said trading in the new calendar year had so far been pleasing, but the first seven weeks of 2011 was not comparable to the same period in 2010 due to the difference in the timing of Chinese New Year.

Craigie said Crown Melbourne was benefitting from capital refurbishments. However, Burswood had been affected by complex-wide renovations during the half. The company’s revenue for the six months to December 31, 2010 grew 0.8 % to US$1.2 billion.

The firm declared an interim dividend of 18 cents per share, with 10.8 cents franked, steady on the dividend in the prior corresponding period. Casinos operator Crown says it can still attract more high-rolling VIP gamblers to its Australian casinos despite the loss of some VIP business to new casinos in Singapore.