Profits at James Packer’s gaming company Crown have soared, but weak consumer sentiment is hurting trade at its Melbourne and Perth casinos.
Crown’s net profit rose 65.7 per cent to $655.7 million in the year to June 30 compared to 2012/13.
On a normalised basis, which strips out the impact of VIP high roller win rates and other costs, net profit rose by more than a third to $640 million.
Chief executive Rowen Craigie said the result was driven by improved trading at its Australian casinos in the second half of the financial year, and another strong year in Macau.
But Crown is facing challenges at its Perth and Melbourne casinos.
“We continue to see weak consumer sentiment that has adversely impacted trading at both Crown Melbourne and Crown Perth, and which reflects the fact that their local economies are continuing to experience structural and cyclical challenges,” Mr Craigie said in a statement on Thursday.
Crown maintained its final dividend at 19 cents a share.