Crown acting to counter poor year

CROWN Resorts has reached a deal with its bankers to suspend dividend payments until at least halfway through the financial year, after the underfire casino group unveiled a massive full-year loss due to Covid and the scrutiny of two state royal commissions.

It means the group’s 37 per cent shareholder James Packer (pictured) will go without a payout for at least another six months, and potentially longer if the Victorian or West Australian royal commissions into the group follow NSW in revoking Crown’s casino licences in their respective states over money-laundering concerns.

Mr Packer’s ability to sell off his shareholding in Crown has also hit another roadblock, with the company confirming it had ceased d i s c u s s i o n s with US equity joint Oaktree about funding a $3bn buyout off his shareholding. But incoming Crown CEO and former Lendlease boss Steve Mccann – taking the reins following executive chairman Helen Coonan’s resignation last week – said the group wouldn’t rule out future takeover offers.

That’s despite Crown knocking back an $8bn takeover bid from Blackstone and a $12bn merger proposal from Star Entertainment Group earlier this year.

“We will consider all options to maximise shareholder value in the context of however the regulatory environment plays out, and what the constraints might be that come from that,” he said.

“There are a range of possible options. As I said, Crown’s got three of the best integrated resorts in the world. Its very attractive from that perspective – I‘m sure there will be people looking really interested in how things play out.”

Crown dived to a full-year loss of $261.6m after it battled Covid shutdowns that cost the company’s bottom line $120.6m.

Group revenue dropped 31 per cent to $1.53bn, but relief came in the form of a $179.6m Jobkeeper wage subsidy.