Written by :
Published on :
(Reuters) - Crown Resorts Ltd (CWN.AX) on Thursday said “VIP” sales at its Australian resorts sank 46% during the July-Oct. 20 period as the international tourist market for the casino operator remained under pressure.
|
*Free trial test drive |
VIP sales are largely made up of visitors on package deals from China, which is the world’s biggest source of tourists. Slowing growth in the world’s second-largest economy due to a bruising trade war with Washington has pressured spending by Chinese high-rollers, hurting Australian casino operators such as Crown and smaller peer Star Entertainment (SGR.AX).
Excluding VIP sales, however, revenue from main floor gaming rose 2% during the period, despite sluggish consumer spending in Australia.
Crown shares climbed as much as 1%, hitting their highest in more than three weeks, while the broader Australian benchmark was 0.6% higher.
The company, founded and part-owned by billionaire James Packer, has been caught in the cross-hairs of three regulatory probes triggered by media reports alleging the company flouted visa rules.
“Let me be clear – Crown does not tolerate any illegal activity by its employees or its patrons,” executive Chairman John Alexander said in a statement.
“The Victorian and New South Wales regulators have taken a decision to examine issues raised in recent media reports and, out of respect for those inquiries, I won’t, and can’t, go into any detail,” Alexander added.
Australia’s law enforcement anti-corruption watchdog is also investigating the allegations.
The company also said it is focused on the completion of Crown Sydney, a new complex on the waterfront of Australia’s biggest city, on time and on budget.
