Australian land-based operator Crown Resorts made AU$2.24bn in revenue for the year ending on June 30 this year. The novel coronavirus COVID19 pandemic had a major impact on the business and declined by 23.6%.
The majority of the revenue came from Crown Melbourne venue, down 25.9%, and generated revenue of $1.58bn. The Crown Perth Casino revenue fell by 24.9% to $607.5mn, while Crown Aspinalls in London has contributed $42.7mn. It has also declined by 24.1%. However, on a brighter note, revenue sports betting and online operations have increased by 4.3%, however, to $134.7mn.
As per the reports, Crown paid out $165mn in commissions which again declined by 36.8%. It earned $200000 in operating revenue. The total revenue from customers now amounted to $2.2bn. However, including the $26.2mn in tenancy revenue, $10.2mn in interest, and $100000 in asset disposals, the crown’s overall revenue stood at $2.24bn.
Speaking on the impact of COVID19 on business, Ken Barton, Crown Chief Executive, and MD said that it has been a challenging year. He said that since the beginning of 2020, trading was going down due to travel restrictions and general uncertainty in the community due to the pandemic. The further dent was done when Crown Melbourne and Crown Perth were asked to be shut down in response to the pandemic in March. He further added that the employees had a very challenging time during the closure and he appreciates the continued support and patience.
The total expense of Crown has been reported as $2.07bn, down by 11.8%.
The operating expense $1.80bn (declined by 15.2%), cost of sales $124.1mn (declined by 21.3%), pre-opening cost $3.5mn, impairment expense $74.5mn, and other costs have totaled $71mn.
The profit from associates is accounted for $300,000, taking total profit to $163.4mn before tax and financial costs down by 73.5%. Further, the profit before tax came to $153.2mn after paying $10.2mn in financial costs. The net profit of Crown is $81.9mn after paying $71.3mn in tax, down by 79.7%. The attributed amount for the owners is $79.5mn down by 80.2%.
Crown Perth has reopened for operations making it a sigh of relief for the owners. However, Crown Melbourne continues to be remained shut as the restrictions are imposed on Victoria.
Barton commented that they are glad that Crown Perth has reopened and they welcome the customers and the employees. He said that it is a great boost for the Western Australian economy as well. The trades have been welcoming he said considering the pandemic in the Perth center of Crown.
He, however, mentioned that Victoria is in Stage 4 state of restriction and Crown Melbourne is shut. The focus of Crown is the health and wellbeing of people, employees, and guests, hence they are cooperating with the government and health authorities.
Barton said that the liquidity to manage the flagship property.
The New South Wales Independent Liquor and Gaming Authority has announced that the inquiry has resumed into Crown Resorts as well, even though Melco Resorts sold its stakes in April. This inquiry was launched after Asian giant Melco agreed to purchase a 19.99% stake for $1.76bn. This came after allegations to Melco’s background and activities.