Crown Resorts revenue down 31% for FY21
Crown Resorts has shared its financial results for FY21, reporting revenue of AU$1.5bn (US$1.1bn), down 31 per cent year-on-year.
Australia.- Crown Resorts Limited has shared its financial results for the fiscal year 2021, reporting revenue down 31 per cent year-on-year to AU$1.5bn (US$1.1bn).
Reported EBITDA was down 77 per cent to AU$114.1m. Crown reported an NPAT loss of AU$261.6m.
The company attributed the losses to the Covid-19 restrictions and multiple countermeasures ordered by the government as well as the temporary closures of Crown Melbourne and Crown Perth.
Jane Halton, Crown’s interim Chairman, said: “2021 has been a challenging year for Crown, with intense regulatory scrutiny and unprecedented impacts on business operations from the Covid-19 pandemic.”
She also thanked Helen Coonan, who has been replaced by Ziggy Switkowski as chairman of Crown Resorts.
She said: “I would like to thank Helen Coonan for stepping up and providing leadership and stability during this period. Helen has played an important role at Crown over a long period of time, particularly since her appointment as Executive Chairman where she has made a major contribution to Crown’s reform program.”
Crown Melbourne reported theoretical revenue of AU$582.5m, down 60.6 per cent. Main floor gaming revenue was AU$406.9m, down 54.3 per cent. That comprises table games revenue of AU$241.2m, down 56.0 per cent, and gaming machine revenue of AU$165.7m, down 51.5 per cent.
Crown Melbourne VIP revenue plummeted 98 per cent to AU$4.4m as gaming operations were closed for 160 days of the financial year.
As for Crown Perth, the venue reported revenue of AU$742.8m, up 21 per cent. Main floor gaming revenue was AU$478.3m, up 38.9 per cent. That comprises table games revenue of AU$171.7m, up 24.8 per cent, and gaming machine revenue of AU$306.6m, up 48.2 per cent. VIP revenue was AU$0.4m, down 99.1 per cent.
The company said Crown Sydney‘s non-gaming operations had progressively commenced operation throughout the year, with all areas of the hotel resort now complete. The gaming areas are ready for opening on a staged basis pending a determination of suitability by the regulator, ILGA.
Alan McGregor, Crown’s Chief Financial Officer, said: “Unfortunately, Covid-19 related restrictions are continuing to impact performance as we enter the 2022 financial year.
“Crown Melbourne has been closed for the majority of this financial year, whilst stay at home orders were imposed in Sydney on 26 June 2021 and remain in place.”
Steve McCann replaces Xavier Walsh as Crown Melbourne’s CEO
Crown Resorts has named Steve McCann as chief executive officer of Crown Melbourne in addition to his role as CEO of Crown Resorts.
McCann will relocate from Sydney to Melbourne as soon as possible subject to Covid-19 interstate travel restrictions. He will replace Xavier Walsh, who stepped down due to heavy criticism during Victoria’s Royal Commission into Crown Resorts.
Adrian Finanzio, counsel assisting Victoria’s Royal Commission into Crown Resorts, had said Walsh was not appropriate to remain connected to the Crown Resorts.
In July, Walsh admitted Crown Melbourne had underpaid its casino tax for seven years. He said he had learned about the possibility in 2018 but only started investigating when Victoria’s Royal Commission into the casino operator was announced.
Asked by former Federal Court judge Raymond Finkelstein, who’s leading the inquiry, why he did nothing for almost three years, Walsh said he “took comfort” from knowing senior Crown staff were aware of the issue.
Finanzio said: “Walsh partially disclosed the existence of the issues to other directors, downplayed the significance of the issue to Crown’s lawyers, and never followed up the matter in any meaningful way.”
