What should shareholders expect from Crown Resorts Ltd this reporting season?

Crown Resorts Ltd (ASX:CWN) could surprise investors with better-than-expected results, here's what you should look for.

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Published February 6, 2015 11:12 am AEDT

Crown Resorts Ltd (ASX: CWN) is set to report its financial performance for the 6 months to 31 December 2014 on 20 February and investors are becoming increasingly confident that the news will be good.

15% Jump

Crown's share price has jumped 15% over the last month as investors have applauded encouraging signs from the group's Asian joint venture – Melco Crown. Crown's 33.6% stake in the NASDAQ-listed Melco Crown Entertainment Ltd accounted for 45% of group revenue in the 2014 financial year and will contribute meaningfully in the coming 12 months.

Results

Analysts are expecting a fall in the group's net profit after tax (before one-off costs) for the full 2015 financial year to $590 million from $640 million in 2014. This is expected to cut earnings per share to 81 cents from 87 cents last financial year.

Crown's net profit was slightly skewed towards the second half in 2014, with $315 million reported in the first six months and $320 million in the second half. If this ratio is repeated, investors should expect around $300 million net profit before one-off costs in the first half of 2015.

Outlook

Investors will be looking for a promising growth outlook from Crown's chairman James Packer. The company was recently forced to shelve plans for a casino in Sri Lanka so investors will be looking for progress towards plans for a new casino in Las Vegas, a new hotel in Melbourne, and evidence that recent upgrades to the Perth and Melbourne casinos are paying off.

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