Crown Resorts sees profit drop in FY22 due to troubled year

In the past year to June 30th, 2022, Crown Resorts Limited, Australia’s largest gaming and entertainment group, saw its revenue decreased by AU 1 billion dollars, which is approximately 679 million US dollars.

Crown’s annual report:

In information provided to the Australian Securities and Investments Commission (ASIC), known as regulator of registered companies and financial markets, which came on Tuesday, Crown reported a net loss of AU 945.4 million dollars, which is approximately 642 million US dollars in FY22, regardless of revenue growth of 20% yearly to AU 1.9 billion dollars, which is roughly 1.29 billion US dollars.

Additionally, the company reported an EBITDA loss of AU 699.6 million dollars, which is approximately 476 million US dollars.

Reasons for loss:

Crown Resorts had a very unsuccessesful year. The company has faced many hurdles such as multiple headwinds, the effect of the nationwide COVID-19 pandemic and regulatory measures taken by the country’s regulators.

And as if that wasn’t enough, the Victorian Gambling and Casino Control Commission (VGCCC) fined the company AU 200 million dollars, which is approximately 136 million US dollars for various offenses by its subsidiary, Crown Melbourne, which were uncovered throughout last year’s Royal Commission.

Mark McWhinnie, CEO of the Crown Sydney, a subsidiary of Crown Resorts, said: “The financial performance reflects the challenging environment faced by Crown during the pandemic, with significant impact on our operations, particularly in the first half. 

“During the year, Crown also navigated significant regulatory matters. These matters are ongoing and we continue to cooperate with the relevant parties on resolutions.”

The results:

Bottom line results in FY22 include a 63% increase in revenue at Crown Melbourne to AU 923.8 million dollars, which is approximately 628 million US dollars and a 1.2% decrease in revenue at Crown Perth to AU 740.9  million dollars, which is approximately 504 million US dollars.

However, Crown Sydney‘s non-gaming assets contributed AU 113 million dollars, which is approximately 77 million US dollars, offsetting AU 68.4 million dollars, which is approximately 47 million US dollars, from the previous year.

After receiving a license from the NSW gaming regulator in August, Crown Sydney casino is now fully operational.

These poor results indicate a difficult start for the US private equity giant, Blackstone Group, which bought Crown Resorts in June this year.

About Crown Resorts Limited:

Headquartered in Southbank, Australia, the Crown Resorts Limited was established and officially launched in 2007.

It owns two of Australia’s leading gambling and entertainment complexes, Crown Melbourne and Crown Perth.

The company mainly invests in the integrated resorts sector.