Las Vegas most challenging for Crown: James Packer, by Lyndal McFarland - The Australian - 28th October 2008

Casinos group Crown expects the coming 12-18 months to be "challenging", chairman James Packer said today.

Las Vegas would pose the biggest challenge to Crown, Mr Packer said, but the group remained confident that its Australian businesses would continue to perform well this year.

Mr Packer told shareholders at Crown’s annual general meeting in Melbourne that the company was well positioned on a 2-3 year view.

Chief executive Rowen Craigie said recent trading continued to be solid at the group's Australian casinos, Crown and Burswood.

Combined revenue from table games and gaming machines had risen 4 per cent from July 1 to October 21, as Crown recorded “very strong” growth in the international VIP commission program, Mr Craigie said.

While a few segments were showing signs of softness, such as low-end gaming machines, corporate events and corporate hotel bookings, these effects had been offset by solid growth in table games, high-end slots, leisure-hotel bookings and private functions.

The Cannery casinos portfolio in North America, which Crown had agreed to buy, saw a decline in the Las Vegas sector, where it caters to “locals”.

Revenue at its Meadows Casino in Pittsburgh, however, had risen 14 per cent in the September quarter.

(Credit: The Australian)

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