Crown Resorts Experiences Further Delays with Sydney Development
Crown Resorts is facing further delays with the opening of their planned VIP-only casino and luxury 6-star hotel in Barangaroo in Sydney. The company is facing planning delays after previous delays already impacted their expected opening date.
In August last year, Crown announced that due to planning delays, the casino hotel complex opening would likely be delayed 12 months from the originally anticipated November 2019 opening.
“That’s probably now somewhere between 12 and 18 months,” announced Rowen Craigie, at Crown Resorts.
This would lead to Crown Sydney opening in early 2021.
“The planning process is complicated,” continued Craigie. “We can’t lodge our approval for Crown Sydney until (developer) Lend Lease lodges their approval to modify the master plan for Barangaroo South.”
He continued that the delay was regrettable, but that the company is hoping to make up some lost ground in one of the upcoming phases of remediation, construction or the pre-opening of the complex.
The news of the delays came while Crown Resorts continues to experience a drop in profits, particularly from their Macau property. Crown reported a 1.6 percent increase in net profits to $205 million for the second half of the year ending December 2015; however their normalised profits dropped 34.8 percent to $210.3 million.
Their share of reported profits from City of Dreams, their Macau casino resort, dropped 89 percent to $9.4 million. They are considering remarketing their Macau business as a gambling destination for the masses after the significant fall of gambling from VIP high-rollers in Macau .
Crown’s Australian casino resorts performed strongly with a 9.8 percent rise in revenue from the main gambling floors to $861 million, although they experienced a 3.8 percent fall in turnover from VIP gaming to $35.7 billion.
April 16, 2017