James Packer Quits as Crown Resorts Chairman
Crown is one of Australia's leading entertainment groups. The group has principally invested in the integrated resorts sector. It fully owns and operates two prime resorts in Australia – Crown Perth Entertainment Complex and Crown Melbourne Entertainment Complex- and a chain of integrated resorts overseas. With vast investments in the Gaming Industry, Crown also operates several casinos around the world. Nevertheless, the group has in the recent past, faced a few setbacks including a decline in revenue.
Some of the challenges have been attributed to the fall in revenue from its Macau Operations and its inability to continue with the proposed Sri Lanka Casino. Today we will explore the circumstances surrounding the firm's Chairman and billionaire James Packer's recent resignation and the tumbling of the firm's Casino profits.
James Packer, who is also Crown's majority shareholder, recently quit his role as Crown chairman. He will, however, remain on the company's board.
While there is the possibility of him taking up the role of Crown's senior executive director, sources close to Packer state his demanding travel diary as among the primary reasons for his resignation. Packer has spent significant time outside Australia, traversing the world on business development prospects and spending time with his Los Angeles-based family.
Despite his resignation, Mr. Packer has reassured shareholders that Crown remains his foremost business priority and will now focus on developing its online portfolio.
Crown Casino Profits Tumble
Crown Resorts posted a 41 % drop in profit to $ 385 million, attributed to its besieged Macau investments and a significant devaluation of its foreign investments.
The company's share of profits from the Macau-based Melco Casino saw a 58 % drop to $122 million. According to the group's chief executive, Macau was experiencing a turbulent period, the effect of which was felt by all casino operators.
There is no hope of Macau's situation improving soon. While the Gaming returns across Macau dropped by 27 % in the past year, the half last year has seen a 37 % decrease compared to the last corresponding period.
James Packer may have exited the helm of the larger Crown Resorts, but will remain the co-chairman of the firm's subsidiaries: Macau-based Crown Entertainment and Las Vegas-based Alon Resort. And despite the Company's overall decline in profits, its Australian based business remains stable with earnings up 4% to $947 million.