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Australia –Crown VIP revenue almost halved by arrests in China

By - 24 February 2017

Australian casino operator Crown Resorts has seen its VIP gambling turnover drop by nearly half in the first half of its business year following the arrest in China of its VIP marketing team.

Revenues at Crown’s Australian casino resorts fell by 12.5 per cent to US$1.14bn during the six months ending December 31, 2016 with VIP revenue falling by a spectacular 45.3 per cent.

Crown Melbourne was affected the worst with VIP revenue dropping by 47.4 per cent whilst Crown Perth saw its VIP spend fall by 38.6 per cent.

Executive Chairman of Crown, Mr John Alexander, said: “Crown’s Australian operations’ first half result reflected difficult trading conditions. Total revenue at theoretical across the company’s Australian resorts declined by 12.5 per cent. The year on year decline was due primarily to the reduction in VIP program play revenue in Australia, which was down 45.3 per cent during this period. Main floor gaming revenue also decreased by 0.8 per cent, with modest revenue growth in Melbourne offset by softness in Perth.”

Crown also announced that after more than 20 years with the Crown Resorts group, CEO Rowen Craigie will step down from his role with effect from 28 February 2017.

Mr Craigie’s responsibilities will be assumed by the Executive Chairman, John Alexander. Mr Craigie joined Crown Melbourne Limited in 1993.

Mr. Alexander said: “Rowen has been a key member of the Crown executive team for over 20 years. During this time, Rowen has played a major role in building Crown Resorts to be the preeminent Australian operator of integrated resorts. In particular, Rowen has ensured Crown Melbourne has remained the largest and most successful integrated resort in Australia, with the highest standards of social responsibility. Rowen also played a major role in Crown’s expansions in Perth, Macau and in the award of a new licence in Sydney. Rowen has agreed to consult to Crown, as required, on specific projects by the company. This new structure will ensure that for the near term, there is a major focus on the performance of Crown’s key Australian operations, its existing projects, Crown Sydney and Queensbridge Hotel Tower and Crown’s digital businesses.”

Mr Craigie said: “I have been fortunate to have worked closely with three remarkable Australian entrepreneurs in Lloyd Williams, Kerry Packer and James Packer.”

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