Crown Ltd. (CWN), the Australian casino company controlled by billionaire James Packer, reported profit that beat analyst estimates as high rollers placed more bets at its domestic gaming tables. The shares rose to a record.
Net income fell 23 percent from a year earlier to A$396 million ($357 million) in the 12 months ended June, the Melbourne-based company said in a statement today. The result beat the A$386 million average of six analyst estimates compiled by Bloomberg.
Crown has expanded its main gaming floor in the Western Australian state capital of Perth and is advancing plans to build a A$1.3 billion casino on the shores of Sydney Harbour. The market value of its Macau venture, Melco Crown Entertainment Ltd. (MPEL), has more than doubled over the past 12 months amid a 16 percent increase in gaming revenue in the territory in the year through June.
Crown’s Melbourne and Perth casinos are “premium assets that can deliver solid earnings growth,” Sam Theodore, an analyst at UBS AG in Sydney, wrote in a note to clients last month. There’s “potential upside” from the Sydney resort that is expected to be ready in 2018, he wrote.
Crown rose 6.9 percent to A$14.52 as of 10:42 a.m. in Sydney trading, headed for the highest level since its listing in December 2007. The benchmark S&P/ASX 200 index gained 1 percent.
Crown’s board is also proposing to change the company’s name to Crown Resorts Ltd., it said in a statement. It will seek approval from shareholders for the name change in October.
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