Australia's Crown Resorts high-roller sales tank on global challenges

Credit: REUTERS/Jason Reed

Crown Resorts Ltd on Thursday said "VIP" sales at its Australian resorts sank 46% during the July-Oct. 20 period as the international tourist market for the casino operator remained under pressure.

Adds Chairman quote, further details on results, background

Oct 24 (Reuters) - Crown Resorts Ltd CWN.AX on Thursday said "VIP" sales at its Australian resorts sank 46% during the July-Oct. 20 period as the international tourist market for the casino operator remained under pressure.

VIP sales are largely made up of visitors on package deals from China, which is the world's biggest source of tourists. Slowing growth in the world's second-largest economy due to a bruising trade war with Washington has pressured spending by Chinese high-rollers, hurting Australian casino operators such as Crown and smaller peer Star Entertainment SGR.AX.

Excluding VIP sales, however, revenue from main floor gaming rose 2% during the period, despite sluggish consumer spending in Australia.

Crown shares climbed as much as 1%, hitting their highest in more than three weeks, while the broader Australian benchmark .AXJO was 0.6% higher.

The company, founded and part-owned by billionaire James Packer, has been caught in the cross-hairs of three regulatory probes triggered by media reports alleging the company flouted visa rules.

"Let me be clear – Crown does not tolerate any illegal activity by its employees or its patrons," executive Chairman John Alexander said in a statement.

"The Victorian and New South Wales regulators have taken a decision to examine issues raised in recent media reports and, out of respect for those inquiries, I won’t, and can’t, go into any detail," Alexander added.

Australia's law enforcement anti-corruption watchdog is also investigating the allegations.

The company also said it is focused on the completion of Crown Sydney, a new complex on the waterfront of Australia's biggest city, on time and on budget.

(Reporting by Devika Syamnath in Bengaluru; Editing by Sandra Maler and Sam Holmes)

((Devika.Syamnath@thomsonreuters.com; +91 80 6749 1130;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More