Crown Suffers Revenue Loss Amid Covid-19 Closures!

Australian Resort and Casino Operator, Crown Resorts Ltd, has reported a $261.6 million loss in the 2020/2021 financial year, as revenue fell by 31% to $1.53 billion, and suggests it won’t pay a dividend in the next six months.

The announcement comes after Crown recorded $80 million profit the previous year.

The accommodation giant claims it has been hampered by government mandated closures due to the Covid-19 pandemic, resulting in significantly reduced gaming revenues, whilst still incurring ongoing operational costs.

“2021 has been a challenging year for Crown, with intense regulatory scrutiny and unprecedented impacts of business operations from the Covid-19 pandemic,” said interim Chairman Jane Haltan.

According to CommSec, mandated closures across Australia have cost Crown a total of $120.6 million, including Crown Melbourne, where 160 days of Covid-19 related closures saw a 64% drop in revenue, down to $579 million. Crown Melbourne recorded an EBIT (Earning Before Interests and Taxes) loss of $271 million.

Further hindering Crown are enquiries into its operations by the Perth Royal Casino Commission, which could strip the organisation of its casino license. The Perth Royal Casino Commission is expected to deliver its findings by the 4th of March, 2022.