Crown sees solid growth in 2009 - Business Spectator

Casino operator Crown Ltd is forecasting solid growth in fiscal 2009 despite a challenging market, but says the next 12 to 18 month will be "particularly challenging, especially overseas."

Crown reported a four per cent rise in revenue from table games and gaming machines for the first quarter of fiscal 2008, compared to the same period last year.

While particular areas of the business are showing signs of softness, Crown expects solid growth in 2008/2009, despite anticipating a more difficult trading environment, chief executive officer Rowen Craigie said at the annual general meeting.

"While a few customer segments are exhibiting some signs of softness (e.g. low end gaming machines, corporate events and corporate hotel bookings), these impacts have been offset by solid growth in other customer segments (e.g. table games, high end slots, leisure hotel bookings and private functions)," Mr Craigie said.

"We expect solid growth in 2008/9 despite the anticipation of a more difficult trading environment and the disruption from the casino refurbishment programs," he said.

Chairman James Packer told shareholders that the next 12 to 18 months would be particularly challenging, especially overseas.

"While on a 12 to 18 month view it will be challenging particularly in Las Vegas, on a two to three year view we see ourselves as having some of the best operating assets in the industry and importantly one of the strongest balance sheets in the industry. Hence, we are confident about our long term prospects beyond the current challenging operating environment," Mr Packer said.

Mr Craigie said recent trading at Crown's Australian casinos continued to be solid and the company was confident a casinos industry in Macau was sustainable.

"Recent trading at our Australian casinos, Crown Melbourne and Burswood, continues to be solid," Mr Craigie said.

Combined revenue from table games and gaming machines was up four per cent in the period from July 1 to October 21, against the same period in fiscal 2008.

Crown's Australian casinos earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8.2 per cent in 2007/08.

Crown delivered a normalised net profit after tax of $370.1 million and its total dividend for the year was 54 cents per share.

Crown shares closed down 2.78 per cent to end at $6.30 on Tuesday.

(Credit: Business Spectator)

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