Auditor KPMG has said the company’s future is uncertain due to regulatory investigations and the impact of the Covid-19 pandemic on revenue.<\/p>\n\n\n\n\n\n\n\n
Australia.-\u00a0KPMG, Crown Resorts’ auditor<\/strong>, has warned that multiple investigations and the impact of the Covid-19 pandemic have created significant uncertainties over whether the Australian casino operator can continue to operate.\u00a0<\/p>\n\n\n\n Since the company faced\u00a0money-laundering allegations<\/a>\u00a0in 2019, it has been involved in legal disputes and is currently facing two Royal Commissions. Crown has also said that the\u00a0Australian Transaction Reporting and Analysis Centre (Austrac)<\/a>\u00a0is \u201cvery likely\u201d to bring a civil lawsuit against its casinos in two cities, which could lead to hefty fines.<\/p>\n\n\n\n According to the Strait Times, the auditors’ report said Crown bonds were in danger of being reimbursed<\/strong>\u00a0if its credit score falls beneath speculation grade.\u00a0<\/p>\n\n\n\n Auditors said: “The conditions disclosed… indicate a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern.”<\/p>\n\n\n\n Crown Resorts has made reforms<\/strong>, but\u00a0Adrian Finanzio<\/a>, counsel assisting the inquiry, has told Victoria\u2019s Royal Commission that\u00a0Crown Melbourne should lose its casino licence\u00a0<\/strong>due to serious misconduct.<\/p>\n\n\n\n Crown shares<\/a>, which have fallen 26 per cent since its 2019 highs, were 1.5 per cent lower to close at 9.76 on Thursday, somewhat overperforming a more extensive market that fell 1.9 per cent. <\/p>\n\n\n\n Crown Resorts’ <\/strong>results for the fiscal year 2021 reported revenue down 31 per cent<\/strong>\u00a0year-on-year to AU$1.5bn (US$1.1bn). Reported EBITDA was down 77 per cent<\/strong>\u00a0to AU$114.1m. Crown reported an NPAT loss of AU$261.6m.<\/p>\n\n\n\n The company attributed losses to Covid-19 restrictions<\/a>\u00a0and and the temporary closures of\u00a0Crown Melbourne<\/a>\u00a0and Crown Perth.<\/p>\n\n\n\n Jane Halton<\/strong>, Crown\u2019s interim Chairman, said: \u201c2021 has been a challenging year for Crown, with intense regulatory scrutiny and unprecedented impacts on business operations from the Covid-19 pandemic.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Auditor KPMG has said the company’s future is uncertain due to regulatory investigations and the impact of the Covid-19 pandemic on revenue.<\/p>\n","protected":false},"author":176,"featured_media":17277,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Auditor KPMG has expressed significant uncertainty regarding Crown Resorts' ability to continue as a going concern, citing ongoing regulatory investigations, potential civil lawsuits from Austrac for money laundering allegations, and the severe financial impact of the Covid-19 pandemic. The company reported a 31% revenue decline for FY21 and faces a recommendation to lose its Crown Melbourne casino licence due to serious misconduct.","focusai_entities":"KPMG, Crown Resorts, Austrac, Adrian Finanzio, Jane Halton","focusai_location":"Australia, Melbourne, Perth, Victoria","focusai_target_profile":"ceo_executive (0.95), regulator (0.98), compliance_legal (0.97), operator_casino (0.92), payments_fraud_aml (0.9), investor_analyst (0.96), journalist_researcher (0.93)","focusai_suggestions":[{"label":"Austrac lawsuit financial impact?","query":"What is the projected financial impact of the potential Austrac civil lawsuit on Crown Resorts' balance sheet and future profitability, considering the auditor's going concern warning?"},{"label":"Licence revocation market impact?","query":"How might a potential licence revocation for Crown Melbourne impact the broader Australian iGaming and land-based casino market structure, competitive landscape, and regulatory precedent?"}],"footnotes":""},"categories":[16336,157,158],"tags":[14657],"class_list":["post-22507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-australasia-news","category-business-news","category-slider-home","tag-crown-resorts"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/22507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=22507"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/22507\/revisions"}],"predecessor-version":[{"id":22541,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/22507\/revisions\/22541"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/17277"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=22507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=22507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=22507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Crown Resorts revenue down 31 per cent for FY21<\/h2>\n\n\n\n