Crown on hunt for chief

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CROWN Resorts has plunged to a $121m first-half loss and kicked off a search for a new chief executive following the resignation of Ken Barton last week.

Interim executive chair Helen Coonan is set to earn $2.5m a year while in charge, representing a $1.8m rise in annual salary.

But major shareholder James Packer will be hurt by the company’s decision to suspend its dividend for the second consecutive half.

Crown traditionally pays a yearly dividend of 60c a share — but it suffered a hefty loss after the COVID-19 lockdowns of its casinos in Melbourne, London and Perth. Mr Barton resigned after he was admonished in the Bergin Inquiry report, which found Crown was not fit and proper to hold a casino licence in Sydney.

Ms Coonan said she did not plan to remain in the top job for an extended amount of time, with the board already having appointed an external firm to conduct a “comprehensive global search” for a new CEO.

“I did not take this position lightly but the board concluded the approach would provide leadership, stability and certainty at an important time,” she said.

Ms Coonan reaffirmed her commitment to a “complete and comprehensive” reset of the company in the wake of the inquiry’s findings.

Pressure is also mounting on Crown director Harold Mitchell to resign.

NSW Independent Liquor and Gaming Authority chair Phillip Crawford told 2GB radio: “We think he needs to move on.”

Crown’s statutory revenue for the half year fell 62.1 per cent to $581m.

The costs incurred during the mandated closures amount to $82.6m, but the company received $146.3m in JobKeeper payments and other wage subsidies in the UK.

The Star Entertainment Group received $103m in JobKeeper payments during the period.

Star on Thursday played down the impact of the Bergin inquiry on its future operations in New South Wales.

Releasing its results for the six months to the end of December, which showed a 33 per cent fall in statutory net profit to $51m on the back of a 30 per cent fall in revenue to $741m, Star CEO Matt Bekier said the company would engage with the NSW casino regulator on the recommendations of the Bergin Inquiry.

Star, which will not pay an interim dividend, said its Sydney, Gold Coast and Brisbane casinos had been hit by border closures, COVID lockdowns and restrictions, which made it harder for domestic and international visitors to travel to its properties in Sydney, the Gold Coast and Brisbane.

Crown shares closed 4c up at $9.73, while Star added 1c to $3.69.