- Crown Resorts delivered weak FY2021 results and did not declare the final dividend.
- The results were impacted due to the COVID-19 pandemic.
- The business was impacted as businesses of CWN were closed due to COVID-19 restrictions.
On 30 August 2021, Casino giant Crown Resorts Limited (ASX:CWN) declared its FY2021 results with a net loss of AU$261.6 million, however, the company did not announce any final dividend. The Company had been paying dividends from September 2011 till March 2020. However, FY2021 was a tough period for Crown Resorts with extreme regulatory scrutiny along with unprecedented effects on business operations due to coronavirus pandemic.
How covid 19 impacted crown resorts?
The pandemic put a huge dent on the company’s financials. Key highlights include:
- Statutory revenue declined 31.3% to AU$1,536.8 million.
- Non-gaming revenue declined 52.8% to AU$171.2 million.
- Overall hotel occupancy across three hotels of Crown Melbourne was ~39%.
- Reported EBITDA of AU$114.1 million, slipped 77.4% compared to the previous corresponding period.
- Theoretical EBITDA before Closure Costs and Significant Items declined 52% to AU$241.7 million.
COVID-19 also impacted the business operations of the Company.
- Crown Melbourne’s gaming operations were closed for 160 days due to the COVID-19 related closure.
- Crown Perth delivered strong performance despite 27 days of required closure of gaming operations. It reopened towards June 2020 end with restrictions.
- Crown Sydney opened in late December 2020 but in a restricted capacity. The gaming operations are yet to begin as Crown is in its consultation process with ILGA on suitability, the non-gaming operations observed encouraging property inspection.
- Crown continues to see good momentum in Crown Sydney apartment sales. It achieved more than AU$1 billion in gross sales and pre-sale commitments to date.
However, Crown proactively looked for ways to assist its people through this period. It comprises offering financial support to the employees who have been stood down and those experiencing financial difficulties. Besides, Crown also provided support such as access to its assistance and wellness program to its employees. The Financials however suffered
- Why National Australia Bank, Crown Resorts are under AUSTRAC lens
- Crown Resorts Appoints New CEO, Receives Merger Offer from The Star Entertainment Group
- Crown Resorts (ASX:CWN) to assess the Oaktree Proposal
The business continues to function in an uncertain environment. Thus, multiple factors could impact the financial performance in FY2022. Some of these include COVID-19 related closures and restrictions, regulatory process, improved corporate cost, investment in resourcing and capability along with the business practice.
However, under the new leadership of its significantly renewed Board and senior management team, CWN positioned well to continue the drive of change as it executes the reforms contained within its comprehensive Remediation Plan. Crown Resorts believe that the success of the Remediation Plan would position it as an industry leader in its approach to governance, compliance, responsible gaming as well as risk management.
At AEST 10:29 AM, CWN shares were trading at AU$9.110, down 2.149% from their previous close.