81379c7a-2152-46ca-ba06-d0b0d8158d82.pdf - Contents End | Next ANNUAL REPORT 2015 Contents Previous | Start End | Next Chairmans Message Crown Resorts

81379c7a-2152-46ca-ba06-d0b0d8158d82.pdf - Contents End |...

This preview shows page 1 out of 77 pages.

You've reached the end of your free preview.

Want to read all 77 pages?

Unformatted text preview: Contents End | Next ANNUAL REPORT 2015 Contents Previous | Start End | Next Chairmans Message Crown Resorts at a Glance Crown’s Luxury Resorts Portfolio Contents Financial Performance CEO’s Report Australian Resorts Melco Crown Entertainment Crown Aspinalls and other investments Development Projects Corporate Social Responsibility Directors’ Statutory Report Shareholder Information Financial Report Additional Information Chairman’s Message Crown Resorts is one of Australia’s leading luxury tourism and entertainment businesses, with a significant and growing global reach. Chairman’s Message 1 Crown Resorts at a Glance 2 Crown’s Luxury Resort Portfolio 6 Financial Performance 12 Chief Executive Officer’s Report 14 Australian Resorts 16 Melco Crown Entertainment 22 Crown Aspinalls and other investments 25 Development Projects 26 Corporate Social Responsibility 28 The Crown Resorts Foundation 31 Corporate Governance Statement 33 Nevada Information Statement 46 Directors’ Statutory Report 50 Remuneration Report 60 Auditor’s Independence Declaration 82 Independent Auditor’s Report 83 Directors’ Declaration 85 Financial Report 86 Shareholder Information 146 Additional Information 148 Corporate Information inside back cover Financial Calendar Record date for dividend – 25 September 2015 Payment of final dividend – 9 October 2015 Annual General Meeting – 21 October 2015 2016 interim results – February 2016 Annual General Meeting 10.00am, Wednesday 21 October 2015 River Room Level 1, Crown Towers 8 Whiteman Street Southbank, Melbourne CROWN RESORTS LIMITED ABN 39 125 709 953 It gives me great pleasure to present my first Annual Report as Chairman. Crown Resorts is a proud Australian tourism and entertainment company which makes a significant contribution to our country through our world-class employment, training, tourism infrastructure and social responsibility programs. Results For the financial year ended 30 June 2015, Crown Resorts announced a net profit of $446.3 million before significant items, which was down 36.5% from the previous year. Crown’s portfolio of businesses achieved a mixed result. This year, our investment in Melco Crown Entertainment (Melco Crown) was impacted by a downturn in gaming revenue in Macau that was sharper than anticipated. Crown’s wholly owned Australian resorts, Crown Perth and particularly Crown Melbourne, achieved good earnings growth in subdued domestic conditions. A stand-out was the strong growth in International VIP Program Play turnover across Crown’s Australian resorts. This followed greater investment in our VIP international marketing. A final dividend of 19 cents per share, franked to 50%, was declared, bringing the total dividend for the year to 37 cents per share. Building a global luxury brand will benefit shareholders While Crown has built a strong and resilient business with significant cash flows and solid financial results for over two decades now, it is critical that we have a broader vision for the future, which will allow us to continue delivering strong results for our shareholders. Our most important future priority is to ensure Crown Resorts is globally recognised as a first class luxury resorts brand, as this will help us attract an even greater share of international visitors from across Asia and globally. High net worth individuals from Australia and around the world, especially China, place a very high premium on luxury brands. If Crown delivers on its brand promise of first class luxury properties and service, customers will be prepared to travel further and pay a premium to experience our international network of resorts. Customer loyalty to the Crown brand is helping our hotels run at over 90% occupancy year-round and it is why our iconic plans for Melbourne, Perth, Sydney and Las Vegas are so important. It is also why luxury assets like our world-class restaurants, private jets, yacht, the Capital Golf Course in Melbourne and the proposed interest in Ellerston in regional NSW are so important. All these assets allow us to offer our VIP customers a network of globally connected luxury resorts and “money-can’t-buy experiences”, which build our brand loyalty and appeal. This global approach is absolutely necessary to compete in the increasingly important International VIP gaming market. Customer loyalty to the Crown brand will also help reduce business volatility in an uncertain global economic environment. The ongoing boom in outbound Chinese tourism is a major positive for our resorts and very encouraging given our ongoing pipeline of investment in high quality tourism assets. Construction at the Crown Towers Perth hotel is well underway and it is scheduled for opening in late 2016. In Sydney, our architects and designers have been working diligently to ensure that Crown Sydney, when built, will be one of the world’s great hotels. We are also working with globally recognised architects to ensure the proposed new luxury hotel in Melbourne is a landmark building Melbourne can be proud of. We are continuing detailed design work with our partners on our proposal to build a new luxury resort on the Las Vegas strip. Our commitment to community During the year Crown continued its work as a good corporate citizen. Crown paid more than $640 million in taxes to all levels of Australian Governments, which amounts to almost two thirds of Crown’s Australian normalised profit before tax. Crown has also continued to make a major contribution to our community through our Corporate Social Responsibility programs and our National Philanthropic Fund. This year we employed our 450th Indigenous employee and launched phase two of our Reconciliation Action Plan. We also launched ‘CrownAbility’, one of Australia’s best disability employment programs. In FY15, the Crown Resorts Foundation also helped deliver significant funding and assistance to over 80 community organisations which assist the most disadvantaged in our society and provide young Australians with opportunities they need to learn, grow and be confident in themselves and their ability to succeed. I would like to take this opportunity to thank the Board, management and staff at Crown for their invaluable commitment and contribution. Our former Chairman, James Packer, has done an outstanding job for shareholders over many years and I look forward to working with him as an Executive Board Member on a number of very significant global and Australian projects, including our online strategies. Can I also sincerely thank you, as a valued shareholder of Crown Resorts Limited, for your continued support as we move into the next phase of our transition towards a global luxury brand. Robert Rankin Chairman, Crown Resorts Limited b Crown Resorts Limited Annual Report 2015 Crown Limited Annual Report 2015 Contents Previous | Start End | Next 1 Chairmans Message Crown Resorts at a Glance Crown’s Luxury Resorts Portfolio Financial Performance CEO’s Report Melco Crown Entertainment Australian Resorts Crown Aspinalls and other investments Development Projects Corporate Social Responsibility Directors’ Statutory Report Shareholder Information Financial Report Additional Information Crown Resorts at a Glance Crown Resorts is one of Australia’s largest entertainment and gaming groups with operations and investments in Australia, Asia, the United Kingdom and the United States. The World of C rown Resorts • Crown owns and operates two of Australia’s leading integrated resorts, Crown Melbourne and Crown Perth, which together attract approximately 29 million visits each year. • Crown is investing more than $2.8 billion in upgrading and opening new features at these Australian resorts between FY11 and FY18. City of Dreams, Macau Studio City, Macau • Crown owns and operates Crown Aspinalls in London, one of only five high-end licensed casinos in the West End entertainment district. City of Dreams, Manila • Crown is investing $2 billion to build Sydney’s first six-star hotel resort at Barangaroo on Sydney Harbour. Crown Sydney is envisaged to be operational from late 2020 and is conditional on the granting of all necessary planning approvals. Alon, Las Vegas Crown Aspinalls, London • Crown is expanding its portfolio of resorts across Asia through a 34.3% equity interest in and partnership with Melco Crown Entertainment (Melco Crown), a developer, owner and operator of integrated resorts in Macau and the Philippines. Melco Crown is one of only six licenced casino operators in Macau. Crown Perth Crown Mebourne Crown Sydney • Alon Las Vegas, Crown’s development project in Las Vegas, will expand Crown’s presence as a leading global operator and complements Crown’s expansion in Australia and Asia. • Crown is investing in complementary assets, with interests in online wagering through CrownBet (62% interest) and Betfair Australia (100% owned) and online social gaming through DGN Games LLC (60% interest). It also holds equity interests in Aspers Group (50%) in the United Kingdom and Cannery (24.5%) in the United States. 100% owned operation 100% owned project 34.3% equity interest in Melco Crown Entertainment operations • Crown’s experienced management team has a proven track record of successfully delivering and operating large scale and complex projects. Majority interest in project 2 Crown Resorts Limited Annual Report 2015 Crown Limited Annual Report 2015 Contents Previous | Start End | Next 3 Chairmans Message Crown Resorts at a Glance Luxury Hotels Crown’s Luxury Resorts Portfolio Financial Performance CEO’s Report Australian Resorts Events & Entertainment Melco Crown Entertainment Crown Aspinalls and other investments Development Projects Corporate Social Responsibility Directors’ Statutory Report Signature Restaurants Shareholder Information Financial Report Additional Information Infinity Sky Gaming Internationally renowned chef Heston Blumenthal has opened a restaurant at Crown Melbourne High-end Retail Luxury Resort Facilities The Capital Golf Course, Melbourne Ellerston 4 5 Crown Limited Annual Report 2015 Contents Previous | Start End | Next Crown Resorts at a Glance Chairmans Message Crown’s Luxury Resorts Portfolio C rown Melbourne 100% owned Financial Performance CEO’s Report Australian Resorts Melco Crown Entertainment Crown Aspinalls and other investments Development Projects Corporate Social Responsibility 100% owned • It operates 2,628 gaming machines and has approval to operate 540 table games. • It has approval to operate 2,300 gaming machines and 295 table games. • The resort currently features the Crown Towers Melbourne hotel, with 481 guest rooms, the Crown Metropol Melbourne hotel with 658 guest rooms and the Crown Promenade Melbourne hotel with 465 guest rooms. • The resort currently features the Crown Metropol Perth hotel with 395 guest rooms and luxury day spa, resort pools and the Crown Promenade Perth hotel with 291 guest rooms. • The Crown Conference Centre has 7,350 square metres of conference and meeting facilities, across three floors. • Large-scale entertainment facilities include the 2,300-seat Crown Theatre Perth, along with a world-class convention centre. • Crown Melbourne’s retail precinct features prestigious designer brands and high street retail outlets. Additional Information C • Crown Perth is one of Western Australia’s largest tourist destinations, with an exceptional range of entertainment and tourism experiences. • A broad selection of restaurants and bars are located in the resort, including many of Melbourne’s finest. Shareholder Information Financial Report rown Perth • Crown Melbourne is Australia’s leading integrated resort and one of the most visited tourist destinations with its dynamic and diverse facilities. • Banqueting facilities include the Palladium’s 1,500-seat ballroom and The Palms’ 900-seat cabaret venue. Directors’ Statutory Report • A premium selection of restaurants and bars are located in the resort in addition to casual dining options. • Crown Towers Perth, with approximately 500 luxury guest rooms, is targeted for completion in December 2016. • Crown plans to develop a new 400-room luxury hotel on the site adjacent to Crown Melbourne, subject to planning and other approvals. 6 Artist’s impression of Crown Towers Perth, targeted for completion in December 2016. Crown Limited Annual Report 2015 Contents Previous | Start Crown Resorts Limited Annual Report 2015 End | Next 7 Chairmans Message Crown Resorts at a Glance Crown’s Luxury Resorts Portfolio Financial Performance CEO’s Report Australian Resorts C Melco Crown Entertainment rown Sydney 100% owned project • Crown Sydney, located on Sydney Harbour at Barangaroo, will be the city’s first six-star luxury resort. Crown Aspinalls and other investments Development Projects Melco Corporate Social Responsibility C Directors’ Statutory Report Shareholder Information Financial Report Additional Information rown – City of Dreams Macau • A premier leisure and entertainment destination designed to appeal to the rapidly evolving demands of high-end Asian consumers. • City of Dreams Macau operates approximately 500 table games and 1,200 gaming machines. • Crown’s plan for an iconic Sydney landmark includes 350 guest rooms and suites, luxury apartments, signature restaurants, bars, retail outlets, pool and spa facilities, conference rooms and VIP gaming facilities. • Resort accommodation features the Crown Towers hotel and the Hard Rock hotel, each with approximately 300 guest rooms, and the Grand Hyatt hotel across two towers with approximately 800 guest rooms. • City of Dreams Macau offers a vast selection of high quality food, beverage and entertainment options including around 30 restaurants and bars and 70 retail outlets. 8 Artist’s impression of Crown Sydney. The development of Crown Sydney remains conditional on the granting of all necessary planning approvals. Crown Limited Annual Report 2015 Crown holds a 34.3% interest in Melco Crown Entertainment Contents Previous Crown Resorts Limited Annual Report 2015 | Start End | Next 9 Chairmans Message Crown Resorts at a Glance Melco Crown’s Luxury Resorts Portfolio Financial Performance CEO’s Report Australian Resorts Melco Crown Entertainment C rown – Studio City Macau • Melco Crown holds a 60% interest in Macau Studio City (Studio City), a Hollywood-inspired resort located in Cotai that will transport visitors into a stunning cinematic world. • Studio City will hold its official opening celebrations on 27 October 2015. • Innovative attractions include an art deco façade with an iconic Golden Reel, the world’s highest figure-8 ferris wheel, a Warner Bros.-themed family entertainment centre, the world’s first Batman film franchise digital ride and ‘The House of Magic’ magic theatre. • The resort features approximately 1,600 hotel guest rooms, a 5,000-seat performance arena and a vast array of food and beverage outlets. Crown Aspinalls and other investments Development Projects Melco Corporate Social Responsibility Directors’ Statutory Report Shareholder Information Financial Report Additional Information C rown – City of Dreams Manila • Melco Crown Entertainment holds a 68.8% interest in Melco Crown (Philippines) Resorts Corporation, the operator of City of Dreams Manila. • City of Dreams Manila is Melco Crown’s first integrated resort outside of Macau, and held its grand opening in February 2015. • It has approval to operate up to approximately 1,700 gaming machines, 1,700 electronic table games and 380 table games. • The resort offers 950 guest rooms across three international hotel brands: a six-star Crown Towers hotel, Asia’s first luxury Nobu hotel and Hyatt City of Dreams Manila. • City of Dreams Manila features three separate entertainment venues and a retail boulevard. 10 Crown holds a 34.3% interest in Melco Crown Entertainment Crown Limited Annual Report 2015 Artist’s impression of Studio City, opening in October 2015. Crown holds a 34.3% interest in Melco Crown Entertainment Contents Previous Crown Resorts Limited Annual Report 2015 | Start End | Next 11 Chairmans Message Crown Resorts at a Glance Crown’s Luxury Resorts Portfolio Financial Performance CEO’s Report Australian Resorts Melco Crown Entertainment Crown Aspinalls and other investments Development Projects Corporate Social Responsibility Directors’ Statutory Report Shareholder Information Financial Report Additional Information Financial Performance Earnings were affected by weak market conditions in Macau, which impacted Melco Crown’s result. Australian Resorts performed well, particularly Crown Melbourne, with strong international VIP growth across both resorts. Crown’s Business Strategy Crown reported a normalised net profit after tax (NPAT) of $525.5 million for the full year ended 30 June 2015, down 17.9%. Overall, the results for Crown’s portfolio of businesses were mixed. Crown’s Australian resorts achieved normalised EBITDA growth of 14.1% and normalised revenue growth of 14.0%. Melco Crown’s result was the major contributor to the decline in Crown’s normalised NPAT. Crown’s share of Melco Crown’s normalised NPAT of $161.3 million was down $129.9 million or 44.6%. The decline in Melco Crown’s result was attributable to weak market conditions in Macau. A final dividend of 19 cps, franked to 50%, was declared bringing the total full year dividend to 37 cps. • • • • • Continue to improve and grow Crown’s portfolio of well-recognised, premium branded assets. Crown Group • • Performance for the year ended 30 June 2015 • Optimise the value of Crown’s international investments. • Optimise the operation of Crown Wagering and on-line social gaming operations and explore further growth options. • Manage the Australian properties to achieve earnings growth targets by stimulating visitation and tightly managing costs to improve margins. • Progress the Crown Towers Perth project, Crown Sydney Hotel Resort project and the proposed new hotel adjacent to Crown Melbourne to deliver value for shareholders. FY15 $m FY14 $m % change 3,404.5 2,935.4 16.0% (2,579.6) (2,152.7) (19.8%) Normalised EBITDA 2 824.9 782.7 5.4% Normalised EBIT 562.0 537.8 4.5% Normalised NPAT4 attributable to Crown 525.5 640.0 (17.9%) Reported NPAT before significant items 5 attributable to Crown 446.3 702.5 (36.5%) Significant items (61.3) (46.7) (31.3%) • Explore further growth options in the international gaming market. Reported NPAT after significant items attributable to Crown 385.0 655.8 (41.3%) • Work with Melco Crown to execute Melco Crown’s business strategy of: – continuing to develop junket and non-junket relationships; – maintaining the leadership position at the premium end of the market in Macau; – building and operating VIP and mass market facilities; and – completing the development and the successful launch of Macau Studio City. 3 • Explore further growth options in the Australian market. • Progress the Alon Las Vegas project to deliver value for shareholders. International Normalised expenditure Melco Crown Normalised1 revenue 1. Normalised results have been adjusted to exclude the impact of any variance from theoretical win rate on VIP program play and significant items. 2. Normalised earnings before interest, tax, depreciation and amortisation. 3. Normalised earnings before interest and tax. 4. Net profit after tax. 5. Significant items of $61.3 million (net of tax) in 2015 consist of asset impairments relating primarily to Crown’s investment in Cannery. Australian Resorts Normalised Revenue Australian Resorts Normalised EBITDA • Continue to maximise the performance of Crown Aspinalls. • Continue to work with Crown’s joint venture partner in Aspers Group’s casinos to optimise performance and drive growth. • Develop comprehensive marketing programs. Crown Resorts Limited Normalised NPAT Head Count Australian Resorts 950 700 17,000 3,000 850 600 15,000 750 500 650 400 $ millions 2,000 1,500 1,000 500 $ millions 3,500 2,500 $ millions • Leverage...
View Full Document

  • One '14
  • Wicked, CROWN, Crown Resorts, Melco Crown

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture