What happened to Crown’s share price?
Crown Resorts Ltd. [ASX:CWN] is 7.8% higher today, trading at $15.59 per share.
The rise extends Crown’s rally to 33% since the stock bottomed on January 21.
Why did CWN shares rise?
This morning the company reported its half yearly earnings results.
Net profit fell 47% for the six months to December 31. Crown’s Macau business suffered a sharp fall in earnings, largely due to lower gaming revenue in Macau, following tighter travel restrictions on Chinese punters. But this weaker revenue from the Macau business was anticipated by shareholders.
Crown also incurred one off impairment charges of $60 million related to a writedown of its 25% stake in US-based Cannery and costs from its abandoned plans for a casino resort in Sri Lanka.
Normalised net profit — excluding one-offs — rose 2.3% to $322 million, beating expectations of $280 million.
Crown’s Perth, Melbourne, and Aspinall (London) operations performed well and grew earnings in the half year.
CEO Rowen Craigie described the result as ‘satisfactory when considering the subdued level of consumer sentiment’.
What Now for Crown Resorts Ltd?
Crown are finalising designs to develop and construct a new luxury five-star hotel and apartment complex adjacent to Crown Melbourne.
The Crown Sydney project is awaiting planning approval and agreements with developers. These are expected to be ‘resolved shortly’ so planning applications can be lodged.
Crown says the timetable for completion of the assessment process of the Queens Wharf site in Brisbane has been impacted by the change in state government.
The company announced an interim dividend of 18 cents per share, franked at 50%, payable to shareholders on record at March 27.
for The Daily Reckoning Australia