James Packer's Crown has lifted its profit by two-thirds, but its Australian casinos are feeling the pinch from consumers worried about job losses and the economy.
Chief executive Rowen Craigie says the mining sector slowdown in Western Australia and Victoria's weak economy were hurting gambling at Crown's Perth and Melbourne casinos.
Crown's full year net profit soared 66 per cent to $655.7 million, driven by a solid rise in profit at its Macau joint venture and higher than usual winnings by the house against high rollers.
However earnings at Crown's Melbourne and Perth casinos were flat.
Mr Craigie said the demise of manufacturing in Victoria, including looming mass job losses in the car and aluminium industries, were hurting consumer confidence.
CommSec's most recent quarterly State of the States economic report placed Victoria fifth out of the eight states and territories for economic growth.
"Businesses on the local front move in sympathy with the local economy," Mr Craigie told reporters on Thursday.
"Victoria has got structural issues arising out of the manufacturing sector that states like NSW and Queensland don't have."
The social impact is an unequal one, with main floor gaming down but non-gaming revenue rising in Melbourne, because people on higher incomes were less worried and could still afford to use Crown's high end restaurants and hotels.
"It does get back to who is worried about job security, mortgages, credit card debt," Mr Craigie said.
"Manufacturing in Victoria is based in a lot of regional centres."
Victoria's "super tax" on high rollers was blamed for a 4.6 per cent fall in VIP revenue in Melbourne to $501 million, with Crown management trying to convince the state government to drop it.
Attracting VIP players is proving difficult in Melbourne but is a key part of Crown's strategy for its existing Macau operations and possible future casinos in Sydney, Las Vegas and Brisbane.
It bought three Bombardier jets for $US100 million during the year and a Melbourne golf course for $67.6 million to boost its VIP operations.
Investors liked Crown's profit, sending its shares up 83 cents, or 5.6 per cent, to $15.66.
Morningstar analyst Brian Han said he thought it was a resilient result against the backdrop of subdued economic conditions in Perth and Melbourne.
If the Las Vegas plans go smoothly, it will protect Crown's VIP market position offering a full suite for high rollers, he said.
CROWN PROFIT JUMPS ON MACAU OPERATIONS
* Net profit of $655.8m, up 65.7 pct from $395.8m in 2012/13
* Normalised net profit (excluding VIP win rates) of $640m, up 35.2 pct from $473.2m
* Revenue of $3.1b, up 6.9 pct from $2.9b
* Partly franked final dividend steady at 19 cents a share
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