UPDATE 2-Crown bets on Australia, Macau as U.S. bleeds

* Loss of A$1.2 bln vs net profit of A$3.6 bln yr ago

* Outlook for Australia positive, sees Macau potential

* Says investments in U.S. were "ill-timed"

* Dismisses talk of privatisation

* Shares up 2.5 pct, up 34 pct in 2009 (Adds CEO, analyst comments)

By Saeed Azhar

SYDNEY, Aug 27 (Reuters) - Casino operator Crown Ltd (CWN.AX) will focus on its Australian and Macau businesses after writedowns of $1.2 billion on "ill-timed" U.S. investments sent it deep into the red for the full year.

Crown, owned by Australian billionaire James Packer, also dismissed media reports that the company would be privatised, as its shares rose after core profit beat expectations and on an encouraging outlook.

Packer has struggled to boost the business in the United States where recession-strapped consumers have cut back on gambling. In March, Crown scrapped a deal to buy U.S. firm Cannery Casino Resorts.

"Crown Australian casinos continue to perform well and drives Crown's growth," Chief Executive Rowen Craigie said at a briefing. "In the next 12 months we's focusing on maximising the performance of the Australian operations and working with Melco Crown in Macau."

Crown's Australian casinos have benefited from a resilient consumer, partially aided by government stimulus packages that handed out cash payments to individuals as part of efforts to tide the economy through the slowdown.

But it has not given up on the U.S. market, having elected to buy shares in Cannery in place of the takeover.

Craigie said the firm has no plans to let go of its investments in the United States and the United Kingdom, and its financial position is strong enough for it to look at investment opportunities.

Crown has a stake of around 33 percent in Macau casino operator Melco Crown Entertainment (MPEL.O), which recently raised about $200 million for development opportunities.

Crown posted a full-year loss of A$1.2 billion, compared with a net profit of A$3.6 billion a year earlier. Net profit before one-off items was A$242.2 million, down 36 percent A$376.2 million a year earlier.

Citi analyst Jenny Owen said she was not excited about Crown's stock because it looks fully valued and there were concerns about its U.S. exposure.

"The indigestion from the foray into U.S. gaming will persist, given Cannery exposure," she said.

The results came a day after Malaysian casino firm Genting (GENT.KL) reported lower quarterly earnings as the economic crisis hit its casinos [ID:nKLR514620].

Crown shares had risen 34 percent this year as of Wednesday's close, outperforming a gain of around 20 percent in the benchmark Australian S&P/ASX 200 index .AXJO

(Editing by Valerie Lee)