SYDNEY: Australian billionaire James Packer stepped down as chairman of Crown Resorts on Thursday, after full-year profits at the gambling giant slumped 41.3% on writedowns and falling Macau gaming revenue.
The casino group’s net profit for the 12 months to June 30 fell to A$385mil (US$284.6mil), from A$655.8mil in the previous year.
Shares in Crown declined 3.55% to A$13.04 in midday trade after the results, and news that Packer would be replaced as chairman by Robert Rankin, who was appointed co-chairman in November.
Chief executive Rowen Craigie described the figures as mixed, with gaming revenue rising from Crown’s operations in Melbourne but subdued in Perth.
Profits from Macau, where it owns a third share in Melco Crown Entertainment (MCE), tumbled 57.6% to A$122mil.
“The decline in MCE’s result was attributable to weak market conditions in Macau,” Craigie said in a statement, adding that the drop in gaming revenue accelerated in the first six months of 2015.
The slowdown in Macau, a semi-autonomous Chinese city, has been in part attributed to a high-profile corruption crackdown led by Chinese President Xi Jinping and softening economic growth on the mainland.
Craigie said Macau was “experiencing a difficult period” but predicted better infrastructure and the growth of the China’s middle class would see it remain “the world’s most important and exciting gaming market over the longer term”.
The Australian firm also reported impairments of A$61.3 billion mostly from investments in US-based Cannery casino group and from a discontinued project in Sri Lanka.
In a separate statement, Crown said Packer will remain a Crown director and is set to be appointed as a senior executive director. He will also continue as co-chairman of Melco and the Las Vegas Alon Resort project.
“Crown remains my number one business priority and passion,” Packer said, adding that he would continue to drive the gambling empire’s key projects in Asia and Las Vegas.
“My vision for the company is to be one of the world’s best integrated resort and entertainment providers - as Crown’s largest and majority shareholder, I will be completely focused in delivering on these plans.”
The company declared a final dividend of 19 Australian cents for a full-year payout of 37 cents. - AFP
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