Gaming Strategy
Featured Stories
Legal News Financial News Casino Opening and Remodeling News Gaming Industry Executives Search News Subscribe
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
Search Our Archive of Gaming Articles 

Big Losers Make PBL Big Winner

24 August 2000

AUSTRALIA –Aug. 24, 2000 – As reported by The Australian Financial Review: "Mr Kerry Packer's gamble on Melbourne's once-struggling Crown casino has delivered a jackpot for his Publishing and Broadcasting (PBL), which posted a bumper $324 million annual net profit buoyed by a sustained losing streak among Crown's high-rolling punters.

"Crown's operating profit jumped 50.3 per cent to $273 million in the year to June 30 as the casino pocketed $39.4 million from its high rollers' VIP Program. Only two years ago, Crown lost $350.2 million before Mr Packer swooped on Mr Lloyd Williams' company with a stock bid worth $555 million.

"…PBL's total sales almost doubled from $1.23 billion to $2.4 billion as the traditionally weaker second half contributed sales of $1.22 billion.

"…The company's second-half net profit of $163.5 million beat the $160.5 million achieved in the six months to December 31.

"…Analysts were last night reviewing profit expectations. The market's consensus forecast is for a net profit of about $315 million in 2000-01, although doubts about the sustainability of Crown's above-average returns this year and the advertising market next year are adding uncertainty.

"…In its first full year of inclusion in the PBL balance sheet, Crown contributed revenue of $1.03 billion and would have generated $987.9 million in sales had the theoretical high roller win rate been achieved rather than the above-average rate.

"Underlying earnings before EBITDA at Crown increased by 27.9 per cent to $233.6 million."

< Gaming News