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AGL triples annual profit as Crown's fall offset by VIP boost

AAP  |  09 Aug 2018Text size  Decrease  Increase  |  
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Gas burner AGL results

Energy retailer AGL has nearly tripled its annual profit as Crown drops almost 70 per cent despite a boost in its VIP numbers.

In other reporting news, Suncorp has announced it will sell its life insurance arm for $725m. 

AGL triples annual profit to $1.587bn

AGL (ASX: AGL) says its investments are paying off, helping the energy retailer's annual net profit surge up to $1.587 billion, nearly three times higher than the year before.

The company's underlying profit for the year to June 30 was up 27.6 per cent to $1.023 billion, while revenue grew 1.8 per cent to $12.816 billion.

AGL will pay a final dividend of 63 cents per share, franked at 50.4 cents.

AGL shares were at $21.24 at 11am Sydney time, trading slightly below Morningstar's $22.01 fair value estimate.

Crown Resorts FY profit down 69 per cent

Casino (ASX: CWN) operator Crown Resorts has posted a full-year profit of $573.2 million, down 69 per cent on a 2016/17 result that was inflated by proceeds from the sale of its Macau business.

But revenue for the 12 months to June 30 rose 4.5 per cent to $3.49 billion, with turnover in its VIP high-roller gambling business growing by 54.5 per cent to $51.5 billion.

The boost in VIP play at Crown's casinos in Melbourne and Perth was a "pleasing result", executive chairman John Alexander said in a statement on Thursday.

Crown also announced a new share buyback for $400 million of shares to replace its current ongoing share buyback that ends on August 22.

Crown has declared a final dividend of 30 cents per share, franked at 18 cents.

Crown shares were trading at $13.80, 11am Sydney time, trading almost on par with Morningstar's $13.32 fair value estimate.

Suncorp sells life insurance arm for $725m

Suncorp (ASX: SUN) has entered an agreement to sell its life insurance division to a unit of Dai-Ichi Life Holdings for $725 million, ending more than a year of speculation over a sale it had considered since early 2017.

Completion of the sale is expected to result in an after-tax non-cash loss on sale in 2018/19 of about $880 million, Suncorp said in a statement.

The insurance giant made the announcement on the same day it posted a 1.5 per cent drop in full-year profit to $1.06 billion.

Suncorp shares were at $15.75 at 11am Sydney time, trading slightly above Morningstar's $14.99 fair value estimate.

 

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Emma Rapaport is a reporter with Morningstar Australia.

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