Crown Resorts (CWLDY, CWN.ASX)

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Crown share buyback, hotel float ditched

Casinos operator Crown Resorts will buy back about $500 million of its shares and has decided not to proceed with a partial float of some of its Australian hotels and associated properties.

Crown on Thursday posted a $359.1 million first-half net profit and announced long-term CEO Rowen Craigie would step down, with executive chairman John Alexander to take over his duties as part of a simplified structure.

The gaming group's shares rose in morning trade as it also said it will adopt a new dividend policy and declared a special dividend.

Crown has also undertaken to buy back of some or all of $530 million of subordinated notes listed on the Australian share market.

The company's first-half net profit was up 75.2 per cent, boosted by $176.3 million gain from one-off items, most of which came from the sale of shares in Crown's joint-venture in Macau, Melco Crown Entertainment.

Normalised net profit, which strips out one-off items and variations in the theoretical win rate against high-rolling gamblers, was down 9.1 per cent at $191.3 million.

Normalised revenue from Crown's casinos in Melbourne and Perth fell 12.5 per cent to $1.48 billion as turnover from VIP high- rolling gamblers plunged 45.3 per cent to $19.6 billion.

"Crown's Australian operations' first-half result reflected difficult trading conditions," Mr Alexander said in a statement.

"Total revenue at theoretical (level) across the company's Australian resorts declined by 12 .5 per cent.
"The year-on-year decline was due primarily to the reduction in VIP program play revenue in Australia, which was down 45.3 per cent during this period."

Crown's VIP gaming operations have suffered since the detention in China of Crown employees in October triggered caution in the market.

Crown shares were up 75 cents, or 6.6 per cent, to $12.14 at 1109 AEDT.
CROWN RESTRUCTURES AMID TOUGH CONDITIONS
* Statutory first-half net profit up 75pct to $359.1m
* Normalised net profit down 9.1pct to $191.3m
* Normalised revenue for Australian resorts down 12.5pct to $1.48b
* CEO Rowen Craigie to step down on Feb 28
* Exec chairman John Alexander to take over CEO duties

Source: AAP

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Crown Resorts Boosts Dividends, Buyback Amid VIP Gaming Slump

By Shuli Ren

Australia’s casino operator Crown Resorts (CWN.Australia), whose gaming executives are still detained in China, soared 7.4% on Thursday even as it reported dismal first-half earnings.

In the six months ending December, revenue at Crown Resorts dropped 13.3% from a year ago, due to a 47.4% slump in gaming revenue from VIP clients, who are mostly from China. As a result, net profit after tax fell 10.8% from a year ago.

However, Crown Resorts managed to dress up its bottom line, reporting 75% jump, thanks to $176.3 million “significant items”, mostly coming from its stake sale in Melco Crown Entertainment (MPEL).

Crown Resorts decided to use the proceeds it collected from Melco Crown’s stake sale to boost shareholders’ cash returns.

While Crown changed its dividend policy and cut its dividend to 60 cents a year from 72.5 cents previously, it shelled out 83 cents of special dividend this fiscal year. Crown also announced a $500 million buyback program, estimated to be able to retire 6% of Crown’s issued shares.

Crown has decided not to proceed with the IPO of a 49% interest in its hotels and retail properties, now that it has sold down Melco Crown’s shares.

It makes sense Crown is boosting cash returns now. Even after today’s 7.6% jump, its stock is still trading at A$12.25, 5.5% below the level before its Australian executives were detained in China.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ing-slump/

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Crown announces buyback details

Casinos operator Crown Resorts will raise $500 million by buying 42.9 million of its ordinary shares, or 5.89 per cent of its issued capital, at Friday's closing price of $11.65 a share.

The on-market share buyback was announced on February 23, at which time the company said it would not proceed with a partial float of some of its Australian hotels and associated properties.

Crown also intends to buy back $530 million of subordinated notes listed on the Australian share market.

Source: AAP

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Crown Resorts: Goldman Sachs Says Buy, Capital Management Is Coming

By Robert Guy

Goldman calculates Crown could make AUD1.3 billion from the sale of its shares in Melco Resorts and Entertainment (MLCO) and AUD373 million from the sale of a Las Vegas land parcel.

Add in the remaining AUD470 million of a share buyback and that opens up the possibility of AUD2.15 billion of capital management.

Goldman rates the stock a buy with a AUD15 a share price target.

Crown Resorts was last trading around AUD12.18 a share.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... is-coming/

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Crown Resorts Cashes Out of Melco With $987 Million Sale

ByRobert Guy

Australian casino operator Crown Resorts (CWN.AU) has sold its remaining 11.2% stake in Melco Resorts, earning net proceeds of $987 million.

The sale of 165.3 million Melco Resorts shares - equivalent to 55.1 million Melco Resorts ADRs (MLCO) - ends a more than decade-long relationship between Australian billionaire James Packer and Chinese casino mogul Lawrence Ho.

The sale of shares means Crown and Melco will no longer work together on casino developments in Japan.

Packer will use the proceeds to reduce Crown Resorts net debt. The company intends to split its international assets from its Australian casinos, which includes a high profile casino development in Sydney's Barangaroo precinct.

Crown Resorts' shares have recovered strongly after a number of the company's executives were arrested in China in October amid Beijing's crackdown on capital outflows and gambling marketing to Chinese citizens.

Having fallen to a low of AUD10.40 a share, the stock now trades around AUD12.70 a share.

Source: Barron's Asia

http://www.barrons.com/articles/crown-r ... 1494295539

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China frees top Crown executive jailed for gambling offences

SHANGHAI/BEIJING: China on Saturday freed one of the last remaining Crown Resorts Ltd executives jailed for illegally promoting gambling, as a protracted saga that forced the Australian casino operator to cancel global expansion plans and hurt profits nears an end.

Jason O'Connor, head of international VIP gambling with the casino giant, was released before 7 a.m., an official told media outside the detention centre in Shanghai.

The Australian was the most senior of 16 staff detained in October and jailed by a Shanghai court in June. His 10-month sentence ran from the time of his first detention on Oct. 14 last year.

Reuters was not able to confirm his release with his family or the Australian government.

O'Connor was taken immediately to the airport and left the country, the Australian Financial Review newspaper said, without citing sources.

The authorities released ten employees, including Australian nationals Jerry Xuan and Jane Pan Dan, in July.

Crown, half-owned by billionaire James Packer, had been trying to attract wealthy Chinese to its casinos located outside China, where gambling is illegal, except for Macao.

But the case prompted Crown, the world's biggest listed casino company outside China, to retreat from global expansion plans and sell off its Macao assets, and instead shift its focus back home.

Source: Reuters

http://www.thestar.com.my/business/busi ... lVHvMXI.99