Despite the overall slump in the company’s fortunes in the second half of 2015, Crown Resorts Limited managed to register a 9.8 present increase in revenue. The Crown Casino revealed the rise in revenue came at the right time as their net profits have dropped by close to 22 present compared to the previous year. The drop in the profits was a result of the company’s slow performance in Macau.
Crown’s CEO Rowen Craigie revealed that in their Australian markets alone, the VIP program turnover went down by (3.8%) which he says is not bad compared to the other VIP play markets across Asia. This is despite the $9.8 million recorded losses as regulated by sportsbook Crownbet.
Macau Markets Still are not Playing to Crown Resorts Favour
In Macau, Crown Resort’s investments in the former Portuguese turf, Melco Crown Entertainment, recorded the worst financial performance since 2014.
According to the Chinese mainland government, there is a scare of corruption upon the Casinos and therefore President Xi Jinping is on a clean-up mission. The region has been the backbone of gambling for many years and Xi Dada (Uncle Xi) as President Xi is lately known wants to diversify it to attract families. Xi Dada has held successful campaigns to tighten internet and the media ever since he came to power. The next on his list is the corruption and it looks like gambling is one of the top priorities.
While “Uncle Xi” remains in power, Macau operators like Melco have altered their casino designs and projects to target a different kind of visitor.
For now, however, casinos have to deal with the fact that the good times are definitely over for the time being.