Major losses for Crown

THE troubled Crown Resorts has seen its profits tumble to new lows during the 12 months to 30 Jun, posting a $261.6 million net loss after tax for the period.

The result for the resort and casino operator was a far cry from the $81.9 million profit posted in the previous year, with its close to $2 billion worth of expenses outstripped by a diminishing revenue figure, which was down more than $700 million to $1.536 billion for the year.

The company was also heavily impacted by closure costs of $120.6 million, which included expenses incurred at Crown Melbourne, Crown Perth and Crown Aspinalls while operations were forced to close due to COVID restrictions.

Crown Sydney was able to open select operations from 28 Dec 2020 at a restricted capacity, with the property’s non-gaming revenue taking in $68.6 million in total revenue and an EBITDA after significant items of $123 million.

The last year has been a turbulent one for Crown, which is still awaiting the outcome of Royal Commission inquiries into its Melbourne and Perth locations, while the gaming licence for its Sydney location has been suspended after an independent inquiry in NSW (TD 10 Feb) found it was unsuited to operate a gambling licence, concluding Crown had been utilised by crime syndicates.

The company has now embarked upon several reforms, including linking transactions to recognised financial institutions.