Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Is Investing In Crown (ASX:CWN) Shares A Gamble After The HY19 Result?

Would it be a gamble to invest in Crown Resorts Ltd (ASX:CWN) shares after its half-year report?

Would it be a gamble to invest in Crown Resorts Ltd (ASX: CWN) shares after its half-year report?

Crown Resorts is one of Australia’s largest gaming and entertainment groups. It operates two integrated resorts in Melbourne and Perth. Crown also fully owns and operates Crown Aspinalls in London, one of the high-end licensed casinos in the West End entertainment district. It is currently developing Crown Sydney at Barangaroo.

Here’s what Crown reported today

Crown said that its reported profit was up 9.9% before significant items to $174.9 million, or down 26.7% after significant items. Reported EBITDA was down 2.1% to $291.8 million (click here to learn what EBITDA means).

Crown also reports normalised results, which are adjusted to exclude the impact of any variance from the theoretical win rate on VIP program play and significant items in the prior year. Normalised results remove the volatility of VIP gaming revenue.

Crown reported that normalised net profit was up 0.9% to $194.1 million and normalised EBITDA was down 6.5% to $418.8 million.

At the Australian resorts, normalised revenue was down 1.2% to $1.54 billion, but main floor gaming revenue was up 0.9% to $867.7 million.

Crown Dividend and Buy-Back

Crown has declared another 30 cents per share bi-annual dividend, which is the same as last year.

Six months ago Crown announced a share buy-back of up to $400 million. During the half-year it bought back around $131.4 million of shares.

Crown Management Comments

Crown Executive Chairman John Alexander said: “Crown’s Australian operations’ first half result reflected mixed trading conditions…VIP program play turnover across Crown’s Australian resorts of $19.9 billion was down 12.2% after a soft November and December.”

Is Crown a buy?

Crown has a partially franked dividend yield of 5.2%, which looks attractive in the current environment for income.

Both Crown Sydney and the proposed One Queensbridge could significant boosts to Crown’s earnings over the next few years, which could drive longer term growth.

The current share price weakness could be an opportune time to bet on Crown shares, but the ASX businesses in the free report below could create much better shareholder returns over the next decade.

2 Rapid Growth ASX Shares Rising Much Quicker Than Crown

[ls_content_block id=”14947″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content