Crown Resorts has fallen to a $261 million full-year statutory net loss after the COVID-19 pandemic forced the beleaguered casino giant to close or restrict operations at its Melbourne and Perth properties for much of the past 12 months.
The heavy loss at the James Packer-backed group compares to a $79.5 million profit last year and a $402 million profit in its pre-pandemic result in 2019. Revenue collapsed to $1.5 billion in the year to June 30 – down from $2.2 billion in 2020 and $2.9 billion in 2019.
Crown Resorts has been rocked by the pandemic and three explosive public inquiries into its operations. Credit:Will Willitts
Crown will not pay a dividend. The group is currently awaiting the outcome of Victoria’s royal commission into its Melbourne casino licence, while a separate royal commission into its Perth licence is ongoing.
The licence for Crown’s new Sydney casino – which was set to open in December last year – is suspended after an independent inquiry in NSW ruled Crown was unfit to operate a casino.
The three public inquiries have examined how Crown was infiltrated by organised crime and facilitated money laundering; how it broke Victorian gambling laws and underpaid state taxes, and its cavalier responsible gambling practices.
Crown has become a takeover target amid the rolling crisis. Private equity group Blackstone made an $8.4 billion bid earlier this year, which Crown rejected in May, while its Sydney rival The Star lobbed a $12 billion merger proposal that month.
The Star withdrew its merger offer in July, citing uncertainty over the future of its Melbourne and Perth casino licences.
More to come
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