Is Crown Resorts Ltd in trouble?

Crown Resorts Ltd's (ASX:CWN) massive slowdown in Asian revenue could spell trouble!

a woman

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What? Crown Resorts Ltd (ASX: CWN) received more bad news from its Macau-based joint venture Melco Crown Entertainment Limited last week when the monthly data was released that showed a 39.4% decline in gaming revenue in the month of March and a 35% fall over the first three months of the year.

So What? It seems that analysts actually aren't that concerned. The results came broadly in-line with expectations and a number of analysts have commented that the fall might actually be a GOOD thing because it will re-base figures on the sustainable long-term demand of middle-class consumers.

What Now? Long-term investors will know that Crown and Melco Crown have two of the strongest growth pipelines of any global casino groups. While the assumptions surrounding these expansions are just that, the global gambling market is expected to continue growing for many years yet and Crown is in a prime position to benefit.

The slowdown in Macau is troubling, and it's had a severe impact on the share price over the last 12 months, but most professionals are of the opinion that it'll work out in Crown's favour over time.

Motley Fool contributor Andrew Mudie owns shares in Crown Resorts. You can find Andrew on Twitter @andrewmudie We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policyThis article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.”

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