Recession, What Recession? Crown Casino Moves Ahead
Wednesday 20th August 2008
News that Australian casino giant Crown saw a massive $1.3 billion turned over in the groups operations in the last financial year bodes well for the group’s ability to escape the worst of the worldwide slowdown in the industry. The net figure was a massive $433.3 million which was 6% higher than last year even though the group had to accommodate higher levies and a smoking ban in casinos. So how has the group gone from the bottom only a couple of years ago to rising star?
Since turning around what was seen by many as a mixed bag of operations the group has gone from strength to strength and is currently in negotiations to expand into the US and other foreign fields. There is a feeling that the group is using it improved firepower to take advantage of the difficulties some casino operators are feeling as well as increasing its own room rates and casino fall at the same time.
However, there was one note of caution with confirmation that the VIP business is showing signs of slowdown with less turnover in the VIP lounges. It will be interesting to see how Crown exits this ongoing worldwide slowdown and what kind of exposure it acquires in the months ahead.
News that Australian casino giant Crown saw a massive $1.3 billion turned over in the groups operations in the last financial year bodes well for the group’s ability to escape the worst of the worldwide slowdown in the industry. The net figure was a massive $433.3 million which was 6% higher than last year even though the group had to accommodate higher levies and a smoking ban in casinos. So how has the group gone from the bottom only a couple of years ago to rising star?