The Crown Resorts Ltd (ASX: CWN) share price has pushed higher this morning following the release of its full year results.
The casino and resorts operator’s shares are up 1% to $11.50 at the time of writing.
What happened in FY 2019?
In FY 2019 Crown Resorts reported a normalised net profit after tax of $368.6 million. This was a decline of 4.7% on the prior corresponding period. Despite this, the company maintained its final dividend of 30 cents per share, bringing its full year dividend to 60 cents per share.
On a reported basis, the company’s net profit after tax came in at $401.8 million, which was a 23% increase before significant items or a 28.1% decline after significant items.
These significant items related to a net gain of $232.2 million in the prior corresponding period for the reversal of an impairment of the Alon Las Vegas land and gains on the sale of CrownBet and Ellerston.
What were the drivers of the result?
The weakness in its normalised result was largely down to the subdued trading conditions that it has faced over the last 12 months.
During the year the company saw its normalised Australian resorts revenue slide 5.4% due to a 26.1% reduction in VIP play. And whilst main floor gaming revenue edged higher, it was not enough to offset the softness from its high rollers.
Crown Resorts’ Executive Chairman, John Alexander, explained: “Crown’s Australian operations’ full year result reflected subdued market conditions. Total normalised revenue across Crown’s Australian resorts decreased by 5.4% on the prior comparable period. This decline was primarily due to the reduction in VIP program play revenue in Australia, which was down 26.1%. Main floor gaming revenue increased by 0.5%, with modest revenue growth in Melbourne offset by continued softness in Perth, particularly for the table games business.”
Mr Alexander also hit out at the negative media coverage the company has received this year.
He said: “During the 2019 financial year, Crown again made a major contribution to the Australian economy through its role in tourism, employment, training and its corporate responsibility programs. Crown’s contributions risk being overshadowed by recent media reporting which has unfairly sought to tarnish Crown’s reputation.”
“Crown has zero tolerance for criminal elements and we view these inquiries as an opportunity to continue our cooperation with regulators and other agencies,” he added.
Elsewhere in the industry today, the Star Entertainment Group Ltd (ASX: SGR) share price is down 3% and the SKYCITY Entertainment Group Limited (ASX: SKC) share price has edged higher with Crown Resorts.
With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn… except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.
Hint: These are 3 shares you’ve probably never come across before.
They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”
We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in “The Motley Fool’s Top 3 Dividend Shares for 2019.”
Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!
The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.
- 5 things to watch on the ASX 200 on Wednesday
- Is Skycity Entertainment a top income stock for 2020?
- Star Entertainment meets guidance, warns economy is soft
- Skycity share price falls despite record profit
- Results: Tabcorp share price could fall despite earnings growth
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. The Motley Fool Australia has recommended Sky City Entertainment Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019