Crown Resorts' annual profit has slumped 41 per cent as the mining downturn affects its Perth casino and weak trading conditions in Macau hurt its joint venture operations.
Crown's profit in the 2014/15 financial year fell to $385 million, while "normalised" net profit, which excludes one-off items and variations to the theoretical win rate against high-rolling gamblers, dropped 18 per cent to $525.5 million.
"Overall, the results for Crown's portfolio of businesses were mixed," chief executive Rowen Craigie said.
Shares in Crown dropped 43 cents, or 3.2 per cent, to $13.09.
Earnings and main floor gaming revenue from its flagship Melbourne casino were pleasing, Crown said, but results from Perth were subdued, reflecting Western Australia's mining downturn.
The Melbourne and Perth casinos generated similar growth rates in VIP gambling, but there was a stark difference in the results from the main gaming floor, food and beverage operations, and hotel rooms.
The Melbourne casino benefited from increased marketing and promotion, additional gaming facilities, and increased visits, partly generated by Melbourne's recent sporting events.
Weak market conditions in Macau resulted in Crown's share of profit from joint venture operations falling by $166 million, or 58 per cent.
The Macau gaming market has declined because of China's weaker economy, a crackdown on corruption, unfavourable changes to travel visas and smoking restrictions on casino floors.
Mr Craigie did not speculate on when the Macau gaming market may bounce back.
But it remains the world's most important and exciting gaming market over the long term because China's middle class is becoming increasingly affluent, he said.
Crown's Macau joint venture Melco Crown Entertainment is expected to open its second large scale resort in Macau, Studio City, on October 27.
Crown said its VIP gambling business generated strong growth on the back of lower taxes and a boost to international marketing.
It also acquired a 60 per cent stake in US online social gaming developer DGN Games in July for $US27.5 million.
"It's early days for us, but we think the social gaming space is a relatively high growth market," Crown chief financial officer Ken Barton said.
PERTH AND MACAU WEIGH ON CROWN
* Annual net profit down 41 pct to $385.04m
* Reported annual revenue up 13 pct to $3.48b
* Final dividend unchanged at 19 cents per share
