Crown Limited Annual Report 2013
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Crown Limited Annual Report 2013 Chairman’s Letter Dear fellow shareholders, Crown announced a net profit of $491.0 million for the financial year ended 30 June 2013, before significant items. A final dividend of 19 cents per share, franked to 50%, was announced, bringing the total dividend for the year to 37 cents per share. During the last 12 months, Australia’s leading integrated resorts, Crown Melbourne and Crown Perth, have delivered an improved performance, despite evidence of weak consumer sentiment, particularly in Melbourne. The result demonstrates that by providing first class facilities, we can continue to attract domestic and international visitors to our resorts. The significant investment we have made in our Australian resorts has ensured they remain two of Australia’s premier tourist destinations, capable of competing with the best tourist facilities in the Asian region. The all-encompassing “My vision for transformation of our properties has reinforced Crown’s position as one of the Crown sees region’s leading operators of integrated resorts. In July 2013, the New South Wales Government invited Crown to advance to us as a leading Stage Three of the New South Wales Unsolicited Proposal process in respect of our proposed development and operation of a six-star hotel resort at Barangaroo global luxury South on Sydney Harbour. Crown is continuing to work with the NSW Government brand, with a as part of this process. In Macau, Melco Crown Entertainment’s (MCE) development pipeline continues clear focus on to progress. MCE’s Studio City is on track and is due to open in mid-2015. MCE is Asian tourism.” moving forward with plans for a fifth hotel tower at City of Dreams and anticipates that construction will commence by the end of 2013. MCE also has an interest Crown Limited ABN 39 125 709 953 James Packer in a consortium to develop and operate an integrated resort in Manila, the Chairman Philippines, which is expected to open in the middle of 2014. These exciting Crown Limited development opportunities are key components of MCE’s strategy to diversify Annual General Meeting Financial Calendar its revenue streams, maximise return on invested capital and drive long term shareholder value. Wednesday 30 October 2013 Record date for dividend – 27 September 2013 10.00 am (Melbourne time) Payment of fi nal dividend – 11 October 2013 In the year ahead, we will be focussing on the performance of our Australian resorts, River Room Level 1, Crown Towers Annual General Meeting – 30 October 2013 including a continued focus on cost control. We will progress the Crown Sydney Hotel Resort proposal and the Crown Towers Perth development. We will continue 8 Whiteman Street, Southbank, Melbourne 2014 interim results – second half of February 2014 to assist MCE with their development projects. The Crown Board has resolved, subject to shareholder approval, that the company change its name from Crown Limited to Crown Resorts Limited. The change of the company name is timely, given the large investment Crown has made in its tourism infrastructure over the last few years and its expanding domestic and international investments. Crown remains focussed on investing in our employees, who are our most valuable asset, so we can deliver the highest quality service in all segments of our business. We will also continue to invest in Australia’s tourism infrastructure, demonstrating our confidence in the ability of our integrated resorts to effectively 1 13 22 57 83 compete as world-class tourist destinations. In addition, we will continue to work Chairman’s Letter Crown Perth Sustainability Report Remuneration Report Financial Report closely with governments at all levels and our other stakeholders. On behalf of the Board, I wish to thank Crown’s employees and management for their valued contributions during 2013. I would also like to thank you for your 6 16 30 79 138 continued support and interest as a shareholder of Crown Limited. Portfolio of Integrated Melco Crown Corporate Governance Auditor’s Independence Shareholder Information Resort Assets Entertainment Statement Declaration Yours faithfully, 8 19 40 80 140 Chief Executive Crown Aspinall’s Nevada Information Independent Auditor’s Additional Information Officer’s Report Statement Report 10 20 44 82 141 James Packer Crown Melbourne Crown Sydney Directors’ Directors’ Declaration Corporate Information Chairman Statutory Report Crown Limited Crown Limited Annual Report 2013 | Australia’s Leading Integrated Resort Company 1 Crown Limited Annual Report 2013 Hotels Dining Crown’s integrated resorts offer premium and luxury accommodation in all of From some of the most awarded restaurants in Australia through to casual our world-class hotels, with facilities that include swimming pools, gyms, tennis food court offerings and cafés, Crown Melbourne and Crown Perth are each courts, and day spas. This year we provided over one million guest nights, renowned for their range of cuisines and dining options. delivering impeccable service to our local, state and international guests. 2 Crown Limited Annual Report 2013 | Australia’s Leading Integrated Resort Company 3 Crown Limited Annual Report 2013 Gaming Entertainment Shopping Events Both Crown Melbourne and Crown Perth have Crown Melbourne and Crown Perth host a variety of Whether guests are looking for the latest fashion Crown hosts an extraordinary range of occasions, from luxurious world-class VIP salons and a vibrant musicals, plays, ballets, rock concerts, comedy acts and clothing and accessories, or luxury items from intimate meetings to large-scale corporate conferences, and exciting main gaming floor, offering customers other entertainment across a range of excellent venues. Louis Vuitton, Prada, Burberry, Bvlgari, Versace gala events and weddings. a range of gaming experiences. and other leading designers, Crown offers the perfect shopping experience. 4 Crown Limited Annual Report 2013 | Australia’s Leading Integrated Resort Company 5 Crown Limited Annual Report 2013 Melbourne PERTH Melbourne MACAU MelbournePERTH PERTHMACAU MACAU Our goal is to create integrated resorts capable of competing with the best in 100% owned 100% owned 33.7% interest in Melco Crown Entertainment the Asian region. • Crown Melbourne operates 2,500 gaming machines • Crown Perth has approval to operate 2,100 gaming CITY OF DREAMS and has approval to operate 500 table games. machines and 245 table games. • City of Dreams operates more than 1,580 gaming • Crown Towers Melbourne hotel has 481 guest rooms. • Crown Metropol Perth hotel has 395 guest rooms. machines and approximately 450 table games. • Crown Metropol Melbourne hotel has 658 guest rooms. • Crown Promenade Perth hotel has 291 guest rooms. • Crown Towers Macau hotel has approximately 300 guest rooms. • Crown Promenade Melbourne hotel has 465 guest rooms. • Crown Towers Perth hotel will have approximately • Hard Rock hotel has approximately 300 guest rooms. • Crown Conference Centre has 7,350 square metres of 500 guest rooms and will be completed in 2016. conference and meeting facilities, across three floors. • Crown Perth’s large-scale entertainment facilities include • Grand Hyatt hotel has approximately 800 guest rooms. • Banqueting facilities include the Palladium’s 1,500-seat the 2,300-seat Crown Theatre Perth. • City of Dreams has more than 20 restaurants and bars. ballroom and the Palms’ 900-seat cabaret venue. • World-class convention and event facilities are available. • The resort has a range of retail options. • A broad selection of restaurants and bars are provided • A broad selection of restaurants and bars are provided • City of Dreams hosts Franco Dragone’s iconic and in the resort, including many of Melbourne’s finest. in the resort, including some of Perth’s best. spectacular show ‘The House of Dancing Water’. • Crown Melbourne’s retail precinct includes internationally • Crown Perth also has a luxury day spa and retail outlets. • Other key attractions include The Bubble audio-visual renowned designer boutiques and retail outlets. experience and Club Cubic. • Entertainment facilities include a multi-screen ALTIRA cinema complex, a bowling alley, and an interactive • The casino and hotel feature approximately 170 table entertainment auditorium. games and approximately 200 guest rooms. • Crown Melbourne has two luxurious day spas. MOCHA CLUBS • The Mocha Clubs are a network of gaming lounges, with approximately 1,600 gaming machines. 6 Crown Limited Annual Report 2013 | Australia’s Leading Integrated Resort Company 7 Crown Limited Annual Report 2013 Chief Executive Officer’s Report Normalised EBITDA from Crown Perth was $240.8 million, culture. City of Dreams again increased its market share “The extensive capital expenditure program has ensured up 6.4% on the pcp. Reported EBITDA for the period was in the mass market table games segment and achieved Crown Melbourne and Crown Perth are world-class $240.8 million, down 11.1% or $30.1 million on the pcp. market-leading mass table yields, which is increasingly resorts, capable of competing with the best in the Asian The win rate in the pcp was 1.84% which resulted in a positive important in a table supply constrained market. EBITDA variance of $44.6 million. Studio City, in which MCE has a 60% equity interest, region. Both resorts offer unsurpassed service, six-star To further optimise the synergies and performance of our two is on budget and on track and due to open in mid-2015. luxury and a variety of entertainment experiences Australian resorts, Crown recently created the position of In addition, MCE is moving forward with the fifth hotel tower – a unique combination that underpins the strength Chief Executive Officer Australian Resorts. Barry Felstead, at City of Dreams and anticipates construction to commence who had been Chief Executive Officer of Crown Perth, was by the end of 2013. As well, MCE, through its 69.3% owned of Crown’s leading global luxury brand.” appointed to that position. subsidiary, Melco Crown (Philippines) Resorts Corporation, Rowen Craigie Chief Executive Officer Crown Limited Crown Sydney Hotel Resort Proposal has an interest in a consortium to develop and operate an integrated resort in Manila, the Philippines.