Crown shrugs off analysts’ concerns it is overstretching itself with its $13 billion multi-country development pipeline, saying that its main projects were already funded and that its new Las Vegas venture was destined for success, local press reports.
Crown executive vice-president Todd Nisbet said the company could comfortably handle any future funding commitments.
Any risks were spread across Crown and the Melco Crown Entertainment joint venture the company said. Nisbet added that the company’s projects in Macau and The Philippines were funded and would be operating soon.
In trading on Friday, Crown shares had fallen A$35¢ or 2.3 per cent to A$14.83 at 1.10pm AEST. Although the shares have tumbled since Monday, when Crown told the market it had outlaid $US280 million for its Vegas property, the falls on Friday are more than likely tied to a weaker than expected financial result for Melco Crown Entertainment, local press reported. MCE quarterly revenue fell 7 per cent to $US1.2 billion, below consensus of $US1.3 billion.
Crown last week unveiled plans to build a multi-billion-dollar casino hotel in the Las Vegas strip, to be developed by a new company headed by Andrew Pascal.