Crown Resorts (ASX:CWN) posts half year loss amid pandemic restrictions

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Crown Resorts (ASX:CWN) posts half year loss amid pandemic restrictions

 Crown Resorts (ASX:CWN) posts half year loss amid pandemic restrictions

Summary

  • Crown Resorts reported a net loss of $120.6 million in 1H FY21.
  • Due to COVID-19 pandemic, Crown Melbourne remained closed for the majority of the first half.
  • Crown Resorts’ share price is trading mildly up by 0.3 per cent at A$9.72 (as at 11:19 AM AEDT).

On 18 February 2021, Crown Resorts Limited (ASX:CWN) released its half-yearly results for six months ended 31 December 2020. The company reported a net loss of $120.6 million, compared to a $218.7 million of net profit in the prior comparable period (pcp). The loss of $120.9 million (out of the total loss) was primarily attributable to members of the Parent.

The reported revenue of $581 million was also down by 62.1 per cent over pcp. However, the company was able to cut down on its expenses from $1.21 billion in 1H FY20 to $716.1 million in 1H FY21.

Crown Melbourne

Due to COVID-19 pandemic, Crown Melbourne remained closed for the majority of the first half. Non-gaming operations of the casino slowly recommenced from November 2020, with a few food and beverage outlets re-opening in a limited capacity.

Crown Melbourne also recorded JobKeeper subsidies worth $27.1 million for employees who worked in either a full or partial capacity during the reported period. Talking about the revenue of $97.1 million, it was down 90.5% on the pcp. Theoretical EBITDA before closure costs and significant items was $5.8 million, down 97.8% on the pcp.

Read More: Crown Resorts’ (ASX:CWN) Sydney Hotel Opens Up, Casino Launching Remains Barred

Crown Perth

During the reported period, Crown Perth maintained all gaming and non-gaming operations under COVID-19 related operating restrictions. Crown Perth recorded $24.7 million in JobKeeper subsidies and clocked a $409.0 million revenue, which was down 5.3% on the pcp.

Image Source: Crown Resorts’ ASX update, dated 18 February 2021

Main floor gaming revenue was $275.1 million, up 13.6% on the pcp and theoretical EBITDA before significant items was $162.7 million, up 33.7% on the pcp. The operating margin increased from 28.2% to 39.8%, primarily driven by a favourable mix of business and lower marketing costs.

Crown Sydney

The gaming operations commenced on 28 December 2020 as NSW was under tight restrictions by the government. The imposed restrictions included capacity limits at each venue based on a prescribed maximum density of one person per four square metres.

Stock Performance

Crown Resorts’ share price is trading mildly up by 0.3 per cent at A$9.72 (as at 11:19 AM AEDT). The stock has been moving in a tight range of A$10.32 to A$9.22 for the last three months, delivering a 4.1 per cent return.  

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