Shares of Crown Resorts Ltd (ASX: CWN) fell as much as 8% lower today upon the announcement of its half-year results.
For the period ended 31 December 2015, Crown Resorts reported a 10.1% rise in revenue to $1.88 billion and a net profit after tax of $205 million, up 1.6% on the prior corresponding period.
Crown's assets in both Melbourne and Perth put in a solid revenue performance during the half. Crown's Wagering & Online business saw revenue increase from $23.7 million to $109.9 million. However, its loss widened from $7 million to $16.7 million.
Crown said weak market conditions adversely impacted the Melco Crown Entertainment results. Crown's share of normalised net profit from Melco Crown Entertainment was down 66.3% to $37.2 million.
"The 2016 first half results across Crown's portfolio of businesses were varied," Crown Resorts CEO, Rowen Craigie, said. "The decline in MCE's result was attributable to weak market conditions in Macau."
Crown said its Macau subsidiary will pay a special dividend of $US120 million to it on or about 16 March 2016. Crown said the dividend evidenced the group's strong cash position. Moreover, it said the medium to long-term outlook for Macau remains positive.
Pleasingly, the Crown Resorts board declared a 50% franked 33 cents per share interim dividend, up from 18 cents per share in the prior corresponding period. The dividend is payable 6 April 2016.
The leading gaming and resorts operator did not issue a full-year financial outlook, but updated the market on its various interests and joint venture partnerships locally and abroad. It said planning for the Barangaroo project in Sydney is ongoing while design work at the Alon Las Vegas project is also continuing.
Foolish takeaway
Today's results from Crown were impacted by the short-term woes in the Macau gaming business. However, over the long term, the outlook for Crown Resorts appears very bright. Although short-term volatility may persist, expansions of local projects and development of international interests provide Crown with scope for long-term growth.
Therefore, any meaningful decline in share price may present long-term investors with a sound buying opportunity.
