Shares in Crown have tumbled 18 percent since last week in the wake of the detainments, while shares in Star Entertainment are down 12 percent.
New Zealand casino company Skycity Entertainment Group Ltd (SKC.NZ) has seen its stock plunge 19 percent after saying that its business was likely to be adversely affected by the arrests.
20/10/2016 Ceasing to be a substantial holder from PPT
20/10/2016 PPT 6.43% -> 5.16% [total shares 728.71M]
- Around a third of Crown Group revenues are generated from overseas visitors.
- However, only some of these overseas visitors participate in international VIP gaming programs.
- In FY16, around a quarter of the Crown Group’s revenues were generated from international VIP gaming programs
- Less than half of the revenue from Crown’s international VIP gaming programs is currently generated by visitors from mainland China. Consequently, this segment of the business represents approximately 12% of the Crown Group revenues in FY16
- The margin associated with Crown’s international VIP gaming program play business is substantially lower than the margin associated with other businesses in the Crown Group.
- Accordingly, the contribution to Crown Group profits attributable to the international VIP gaming program play business from mainland China visitors is substantially less than 12%.
EPS 2015: 0.52; R/E=10%; TL: 3.69B. NA: 5.15B; PE 2015: 20; P/A: 1.5