Crown Resorts to lease casinos if it loses its gambling licences
Steven McCann, Crown Resorts CEO, said the company could lease its casinos if regulators suspend its gaming licences.
Australia.- While the Royal Commissions examining Crown’s suitability to hold gaming licences continues, the company is preparing for all the possible scenarios. Now Steven McCann, Crown Resorts CEO, has said that the company could lease its casinos.
According to The Sydney Morning Herald, McCann said: “Clearly we have to anticipate a range of scenarios and be flexible enough to respond to the scenarios that are presented.”
A few weeks ago, McCann said: “We will consider all options to maximise shareholder value in the context of however the regulatory environment plays out. Crown has three of the best integrated resorts in the world. I’m sure there will be people looking with interest at how things play out.”
The Western Australian Royal Commission into Crown Perth will continue until March 2022, but the gaming regulator may call on Racing and Gaming Minister Reece Whitby to cancel Crown’s licence before the end of the inquiry.
Victoria’s Royal Commission into Crown Resorts will continue until October 15 after the government approved judge Raymond Finkelstein’s request for an extension.
In the meantime, Macquarie Analysts said the current market value of the Crown is considered to be at AU$4.8bn to AU$5.2bn, down almost 30 per cent since early May.
In May, Crown rejected an offer from Blackstone to acquire the casino operator. The company had upped its original bid from AU$11.85 cash per share to AU$12.35.
Star Entertainment also made an offer of AU$12bn (US$9.4bn) for the casino operator. However, the company withdrew it following suggestions that the operator should lose its casino licence for Crown Melbourne.
Star CEO Matt Bekier still interested in merger
According to Bekier, if Crown is finally forced to break up, Star will consider buying the operator’s venue in Sydney.
According to media reports, Bekier said: “We have to have greater clarity about what we would actually be buying, then we can form a view of how much it’s worth.”
The Star CEO had said the fusion would deliver between AU$150m to AU$200m of cost synergies per annum with an estimated net value of AU$2bn but admitted it depends on the results of the royal commissions.
Crown’s revenue down 31 per cent in the fiscal year 2021
Crown Resorts’ revenue for 2021 was 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.”
