Crown Resorts Ltd posted a 66 percent jump in profits for the year ended June 30 according to a regulatory statement. Net profit was A$655.8 million ($610 million), compared with A$396 million a year earlier, boosted by a record three months at its Macau joint venture with Melco, City of Dreams. Net income rose 35 percent to A$640 million from A$473.2 million a year earlier. High-rolling VIP gamblers accounted for about 27 percent of Crown’s revenue in 2013.
“There’s a lot of cash coming through the business,” said Killian Murphy, a Sydney-based analyst at CIMB, by phone before the announcement. “Macau has been the gaming market of the last decade.” The extra income provides cash-flow for possible new projects in Sydney, Brisbane, Las Vegas, Sri Lanka, Manila and Japan.
Crown shares rose 4.1 percent to A$15.44, reducing this year’s decline to 8.4 percent. Crown is the only gambling company considered investment-grade by all three major ratings companies. With debt and equity worth about 15.66 times its expected earnings, it’s also the world’s most richly-priced casino stock.