Despite a number of missteps last year, Crown Resorts, the largest casino operator in Australia, managed to see an increase in profits. According to a filing with the Australian Stock Exchange, the company indicated that its annual profit had increased by 12.7%. The news pleased shareholders and the company’s stock price jumped to a three-year high.
At the end of the fiscal year on June 30, the company net profit was $287.4 million. This was a substantial increase over the $253.12 million reported in the prior period, and was a direct result of an increase in VIP gambling. That segment increased by 54.5% over the course of the year. John Alexander, the company’s executive chairman, explained, “VIP program play turnover in Australia of $51.5 billion was a pleasing outcome.”
The profit news is welcome, given the decision by the company’s owner, James Packer, to step down from the board in March. Packer, who owns 47% of Crown, unexpectedly resigned over “mental health” concerns.
Several whistleblowers had come forward during the year to admit that the company was engaged in machine-fixing activities at its Melbourne casino. Specifically, the casino removed certain buttons on slot machines that resulted in a reduction in the odds of players winning.