James Packer steps down as chair of Crown Resorts

CASINO mogul James Packer is set to draw a $10 million salary from Crown Resorts after stepping down as chairman.

James Packer Chairman of Crown resorts launches their second Reconciliation Action Plan at the Crown Casino in Melbourne.

CASINO mogul James Packer is likely to draw a $10 million salary from Crown Resorts after stepping down as chairman, The Australian reports.

In a surprise move, the businessman yesterday revealed that he move into a senior executive director role, expected to attract remuneration of about $10 million a year.

The company notified the ASX this morning that Robert Rankin had been appointed as Chairman of Crown Resorts.

Mr Packer will be appointed senior executive director.

Mr Packer, who is Crown’s largest shareholder, says he’ll devote his time in his new role to developing the casino group’s pipeline of resorts around the world.

“Crown remains my number one business priority and passion,” he said in a statement on Thursday.

“Rob Rankin has my complete trust and respect as an executive and he will do an outstanding job as chairman.

Changing of the guard ... incoming chair Rob Rankin with James Packer and Victorian Premier Daniel Andrews after the company launched its second Reconciliation Action Plan in Melbourne.

RIGHT TIME FOR CHANGE

“Given our global growth and aspirations, this is the right time for the company to make this change. I look forward to working closely with him.” Mr Packer said he would work on driving Crown’s joint businesses in Asia and its planned resort in Las Vegas, as well as developing its online operations.

He said he was deeply committed to Crown’s planned six-star resort at Barangaroo in Sydney.

“No project is more important to me,” he said.

The announcement came as Crown posted a slide in profits.

Net profit fell 41.3 per cent to $385.047 million in the year to June 30 while revenues rose 12.6 per cent to $3.5 billion.

On a normalised basis, which strips out the effects of VIP high rollers, the pre-opening costs from Melco Crown and asset impairments, net profit fell 17.9 per cent to $525.5 million. Crown’s bottom line was also impacted by $61.3 million worth of significant items relating primarily to its investment in Cannery. Chief executive Rowen Craigie said Crown’s businesses had a mixed performance during 2014/15.

Normalised earnings from Crown’s Australian casinos rose 14.1 per cent to $916.5 million, with solid growth at Crown Melbourne offsetting subdued growth at Crown Perth.

However contributions from Melco Crown Entertainment, the Macau-based business in which Crown owns a 34.3 per cent stake, fell.

Crown’s share of MCE’s normalised net profit dropped 44.6 per cent to $161.3 million.

Overall gross gaming revenue across the Macau market declined 26.8 per cent during the year.

Last October, Packer told Crown shareholders that lucky high-rollers and weak consumer confidence had hurt Crown’s performance.

“Our VIP businesses are almost $100 million below the theoretical result less than four months into the financial year, due to an adverse win rate, or put simply, bad luck,” he said.

“The punters are killing us.”

Packer created Crown Limited in 2007 by separating the gaming assets from his company Publishing and Broadcasting Limited (PBL), before changing the name to Crown Resorts Limited in 2013.

InterContinental Hotels Group, which counts Crowne Plaza Hotels & Resorts among its suite of hotel brands, launched legal action to stop Packer’s casino group from trading as Crown Resort in 2015 as it could cause “confusion” among their customers.

Tumultuous private life ... Mariah Carey and James Packer pictured on the beach in Spain. Picture: blocco / Splash News and Pictures

PRIVATE LIFE IN THE HEADLINES

Packer has had a tumultuous private life over the past year, being linked in the media to high profile celebrities including supermodel Miranda Kerr and American singer Mariah Carey.

He was also caught in an explosive punch-up with Channel Nine CEO David Gyngell in May 2014.

Earlier this month, Packer broke his silence over the incident, saying he had made up with his former best man.

“I should have never have punched [Mr] Gyngell outside my house,” Mr Packer said.

“I’ve made a bunch of mistakes, but in a business sense, I’ve had a go more than anyone else I’ve known.”