Crown Resorts posts loss of US$632.18m for FY22

The financial results are the first to be published by the group since its AUD8.9bn (US$6.36bn) takeover by Blackstone in June.

11/30/22

The loss was mainly attributed to financial penalties, extensive investment in compliance and Covid-19 restrictions.

Australia.- Crown Resorts has shared its financial results for the financial year 2022. It’s reported an AU$945.4m (US$632.18m) loss while earnings before interest, tax, depreciation and amortisation (EBITDA) was negative AU$699.6m.

Revenue was up 20 per cent year-on-year to AU$1.9bn (US$1.27bn). Crown Melbourne’s revenue increased from AU$567.5m to AU$923.8m and Crown Sydney’s from AU$68.4m to AU$113m, while Crown Perth’s revenue fell from AU$740.9m to AU$731.7m.

Crown Sydney’s gaming floor was not operational during 2022. The casino operator was allowed to open the casino in August.

The company attributed the poor performance to a number of factors, including multiple fines due to inquiries into its casino operations. Covid-19 lockdowns in Perth, Sydney and Melbourne added to the losses.

The financial results are the first to be published by the group since its AUD8.9bn (US$6.36bn) takeover by Blackstone in June.

In November, the Victorian Gambling and Casino Control Commission (VGCCC) announced disciplinary action against Crown Melbourne for failing its Responsible Service of Gambling obligations. The regulator imposed two fines totalling AU$120m (US$77.2m), the largest fine ever imposed by the state’s casino regulator.

Large fines are expected in New South Wales and Western Australia. The group also faces fines from the national financial crimes watchdog, AUSTRAC.

The company has seen several board changes as it seeks to satisfy the regulators.

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