Crown Resorts profit slumps 80 per cent on COVID-19 closures

Crown Resorts' full-year net profit has tumbled 80 per cent to $79.5 million after the coronavirus pandemic forced the James Packer-backed casino giant to shut its gaming floors.

The ASX-listed group on Wednesday said revenue at its casinos and hotels in Melbourne and Perth fell to $2.2 billion for the 12 months to June 30, down 25 per cent on the prior year.

“2020 has been an extremely challenging year," Crown chief executive Ken Barton said in a statement.

Crown’s Melbourne casino remains closed due to the COVID-19 pandemic. Credit:Getty Images

Mr Barton said Crown began to see a drop-off in visitors in January as travel restrictions came into effect and amid community uncertainty about the health crisis.

"In March 2020, Crown was directed to close its gaming activities and a significant part of its non-gaming operations at Crown Melbourne and Crown Perth for an extended period, with our financial results reflecting the impact of these closures," he said.

Crown saw revenue from its main gaming floors falling by 27 per cent to $1.2 billion, while total turnover on its high-roller tables – which rely heavily on international VIP players – slid 46 per cent to $20 billion.

Excluding the cost of the COVID-19 shutdown and significant items, and applying a "theoretical" long-term win rate on turnover to even out lucky or unlucky streaks on the gaming table, Crown's earnings slumped 56 per cent to $161 million.

Crown reported a $53 million impairment against its London casino Crown Aspinalls and a $22 million impairment against the Nobu restaurant chain it co-owns with Hollywood actor Robert De Niro.

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