Crown Resorts has reported growth in during the financial period from June to December 2013. While the company’s profits had increased from the previous period, officials state that their growth is ‘below expectations’. According to reports, Crown Resorts brought in $1.6 billion during the first half of 2013. It marked a 3.3% increase in revenue that was earned during the previous six months.
The company also saw impressive growth in net profits, which increased by 111% to $382 million. Still, this did not seem to be enough for Crown Resorts executives. Officials at the company blame the disappointing results on challenges that are being faced by local economies. We are not yet out of the global recession, and this is certainly reflected by the decline of revenue in the gambling market.
“Overall, we have seen weak consumer sentiment that has adversely impacted trading at both Crown Melbourne and Crown Perth,” says Rowen Craigie, Chief Executive of Crown Resorts. “The results for those resorts were below expectations and reflect the fact that their local economies are experiencing structural and cyclical challenges.”
Fortunately, Crown Resorts is gearing up to make some big investments in the coming future, which will certainly boost revenue. At the moment, the company is eyeing opportunities in Sri Lanka and Japan. While the casino operator is facing some red tape in Sri Lanka, preventing Crown Resorts from going forward with its plans to open up a casino resort, Japan’s government is open to legalizing casino gambling.
Crown Resorts will also see an improved presence in the Australian gambling market, when the operator builds its high roller casino resort in Sydney. The company took exclusivity away from Echo Entertainment’s The Star Casino. The two companies will be competing for VIP business from Asia, and it will certainly boost profits for Crown Resorts.
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