Crown Resorts expects to report a net annual debt of AU$900m when it publishes its financial results on August 30.<\/p>\n\n\n\n\n\n\n\n
Australia.- Crown Resorts has reported that it expects to\u00a0record a net debt of AU$900m (US$676m)<\/strong> for the year ended June 30 2021.<\/p>\n\n\n\n In a trading and earnings update, the company said its 2021 financial year was significantly impacted by the Covid-19 pandemic<\/strong>, with Crown\u2019s properties closed for several periods and imposing capacity limits and physical distancing protocols.<\/p>\n\n\n\n Crown Resorts expects to\u00a0report EBITDA after closure costs of between AU$90-100m<\/strong>\u00a0and warned that it continues to operate in an uncertain environment with several factors expected to impact financial performance throughout the 2022 financial year.<\/p>\n\n\n\n The company believes\u00a0performance will continue to be negatively impacted by Covid-19\u00a0<\/strong>related closures and operating restrictions as well as travel restrictions, including ongoing international border closures.<\/p>\n\n\n\n Crown Resorts is also\u00a0the subject of regulatory questions<\/strong> with Royal Commissions<\/a> ongoing in Victoria and Western Australia. The outcome of those processes may potentially impact Crown\u2019s financial performance.<\/p>\n\n\n\n Due to this situation, Crown expects to\u00a0incur increased corporate costs throughout the 2022 financial year<\/strong>, including legal, consulting and associated costs.<\/p>\n\n\n\n Crown Resorts said it will increase its capability across key areas<\/strong> in the next year, including the addition of approximately 70 new positions in the areas of financial crime and compliance and responsible gaming.\u00a0<\/p>\n\n\n\n In June, Crown Resorts<\/strong> CEO Steve McCann<\/a> met with The Star Entertainment CEO Matt Bekier to talk about the potential merger of the two casino operators<\/a>.<\/p>\n\n\n\n Although no details of the virtual meeting have been released, it’s believed\u00a0McCann may have asked Star to provide more details about its non-bidding offer.<\/p>\n\n\n\n Star Entertainment<\/a> previously said the fusion would deliver between AU$150m to AU$200m of cost synergies <\/strong>per annum with an estimated net value of AU$2bn<\/strong>.<\/p>\n\n\n\n It\u2019s also been suggested that The Star Entertainment<\/strong> could help Crown Resorts<\/a> solve its regulatory problems faster than Blackstone or Oaktree thanks to its experience as a casino operator in Australia.<\/p>\n\n\n\n The Australian Competition and Consumer Commission (ACCC)<\/strong> chairman, Rod Sims announced that a public review will be carried out to decide whether Star Entertainment<\/a> would be allowed to make the acquisition.<\/p>\n\n\n\nStar Entertainment and Crown Resorts’ potential merger<\/strong><\/h2>\n\n\n\n