Dispiriting half-year financials for Crown Resorts Limited

The value of individual shares in Crown Resorts Limited increased slightly earlier today despite the Australian casino operator having publicized an overall loss of around $93.5 million for the six months to the end of December.

The Sydney-listed firm used an official press release (pdf) to detail that the 155% comparable drop in half-year earnings was accompanied by an analogous 62.1% decline in aggregated revenues to about $449.4 million. The company moreover explained that this came as its Crown Melbourne facility recorded a steep 90.5% decline in six-month receipts to about $75.2 million with its sister Crown Perth venue having copped a less drastic 5.3% diminution to roughly $316.8 million.

Income inadequacy:

Crown Resorts Limited also announced that its half-year earnings before interest, tax, depreciation and amortization had fallen by 99% year-on-year to a little beyond $3.4 million with its prestigious Crown London Aspinalls property having posted a loss in the region of $17.8 million, which was over 510% lower than the $4.3 million profit chalked up for the same six-month period in 2019.

Shuttering stain:

According to a report from The Market Herald newspaper, Crown Resorts Limited was severely impacted by the coronavirus pandemic as all of its venues were at some point closed for an immediate after-tax cost in the region of $44.9 million. The Melbourne-headquartered firm is also purportedly struggling due to the fact that it has so far been unable to bring gambling to its new $1.5 billion Crown Sydney development owing to the findings of an official investigation conducted by the New South Wales Independent Liquor and Gaming Authority.

Continuing confidence:

Alan McGregor serves as Chief Financial Officer for Crown Resorts Limited and he reportedly told the newspaper that his firm is remaining optimistic despite the discouraging six-month financials as it has so far sold or signed agreements to unload apartments within its new Crown Sydney project worth in excess of $674.4 million.

McGregor reportedly told The Market Herald…

“Our first-half results reflect the severe impact on operations from the coronavirus pandemic. We expect settlement of the apartment sales to occur progressively from March through the balance of the calendar year, which will help to substantially de-lever our balance sheet.”

Lofty leadership:

In related financial news and the newspaper reported the new Executive Chairman for Crown Resorts Limited, Helen Coonan (pictured), has recently had a further $1.4 million added to her annual pay packet to take her yearly salary to just shy of $2 million. The pay increase purportedly came as a result of the former Australian Senator agreeing to replace predecessor Ken Barton as boss of the casino firm and lead an effort to clean up its reputation in order to secure the lucrative gambling license for its Crown Sydney development.

Coonan reportedly told The Market Herald…

“As Executive Chairman, I am determined to provide the leadership required to drive change. My job is to lead Crown Resorts Limited into becoming a stronger company, a more transparent company and a more respected company. A better company.”