James Packer has opted to step down as chairman of Crown Resorts after the Australian entertainment group posted a year-on-year drop in both normalised and actual net profit after tax during the 12 months through to June 30.
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Robert Rankin will replace Mr Packer, who will retain his role as co-chairman of the company’s Melco Crown joint venture which owns and operates casinos in Macau and the Philippines.
“My vision for the company is to be one of the world’s best integrated resort and entertainment providers – as Crown’s largest and majority shareholder, I will be completely focused in delivering on these plans”.
‘Rob Rankin has my complete trust and respect as an executive and he will do an outstanding job as chairman, ‘ he said. He considers the online gambling segment one that is to provide his company with “great potential” for a future global growth.
‘I look forward to working closely with him’.
Earnings and main floor gaming revenue from its flagship Melbourne casino were pleasing, Crown said, but results from Perth were subdued, reflecting Western Australia’s mining downturn.
The announcement came as Crown reported a slide in annual profits.
Chief executive Rowen Craigie said Mr Packer was devoted to developing Crown into a global luxury brand.
Crown said it was optimistic about the long-term prospects of its Macau business, where Packer will remain as co-chairman.
In a separate statement, Crown said Packer will remain a Crown director and is set to be appointed as a senior executive director.
The declining Macau earnings pushed Crown’s normalised net profit, which removes volatility linked to big spending gamblers, down 19 per cent to A$518.7 million, missing analysts estimates of A$531 million.
While Crown lost a bid to develop a $2 billion casino complex at Brisbane’s Queen’s Wharf in July, it has a raft of other casino developments in the works: Macau’s Studio City complex due to open in October; the Las Vegas Alon resort in 2018; and Crown Sydney by the end of 2020.
The company was also forced to take a $61 million impairment charge on the value of its investments in the Las Vegas Cannery project and its now discontinued Sri Lankan foray.
The full-year results include significant items of AUD61.
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While gaming revenue across the Macau market fell 27 per cent in the past year, the past six months has seen a 37 per cent decline compared to the previous corresponding period.
