The last few years have been very busy for Crown Resorts, as the casino operator continues to expand around the world. While we are seeing more of Crown in the international gambling market, the company is faltering financially – resulting in James Packer resigning from his role as Chairman. Today, ABC News reported that James Packer will no longer be on the board of Crown Resorts.
He will remain on the company’s board, and may be appointed as a senior executive director. Packer will also maintain his role as a co-chairman at Melco Crown Entertainment and Alon Resort. Packer will no longer have the key decision-making role at Crown but he will continue to remain focused on the company’s business.
He says: "I will continue to drive key projects, including our joint business in Asia and our planned resort in Las Vegas”. Crown has had a tough year financially, experiencing a 41% fall in profits. While the company continues to thrive in Australia with a 4% increase in earnings, profits from its Macau property dropped by 58%.
The company was also recently forced to pay a $61 million impairment charge, after Packer’s Sri Lankan casino development fell through. While the company’s finances are suffering, Crown Director Harold Mitchell says that Packer’s decision to step down has also been influenced by his family: "James is going to spend more time with his children, his children live in Los Angeles, so that's perfectly understandable”.
Robert Rankin will replace Packer as Chairman. We are curious to see if Rankin will take the business in a new direction, in order to recover from the past year. There is certainly a great deal of potential for growth in Australia over the next few years, and there is the chance for Crown to see its profits thrive yet again.
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