Crown Resorts Managing Director and CEO Steve McCann believes the company has finally “turned the corner” following a disastrous two years plagued by COVID-19 restrictions and regulatory headwinds.
McCann addressed those troubles as part of Crown’s 1H22 results announcement on Thursday, with the Australian casino giant slipping to a loss of AU$196.3 million in the six months to 31 December 2021 – widened from an AU$120 million loss a year earlier.
Although revenue of AU$778.6 million was 34% higher year-on-year, the results were negatively impacted by AU$79.2 million in closure costs at Crown Melbourne, Crown Perth and Crown Sydney due to government health orders, plus AU$94.7 million in corporate costs primarily related to higher legal and consulting fees associated with regulatory inquiries in all three states in which the company operates.
Another AU$20 million towards an AU$125 million shareholder class action settlement was paid during the period.
However, with Australia now opening up post-COVID and Crown now working with regulators on recommended reforms in NSW and Victoria, McCann referenced “growing confidence we have turned the corner.
“All three of our domestic resorts are back open, with a vaccination strategy to combat COVID-19 providing a pathway forward for our staff, the business and the wider community,” he said.
“Importantly, we continue to build momentum on our company-wide reforms, accelerating work on our remediation plan and making significant advances across multiple regulatory processes. Not only are we building a stronger business, we are working well with the regulators with a priority to deliver a safe and responsible world-class gaming operation.
“In Victoria, we are working in a collaborative and constructive manner with the Special Manager and his office, as well as the new regulator, the VGCCC, to ensure that we build a safe and responsible gaming environment at Crown Melbourne as we seek to re-establish our suitability to hold a casino licence in Victoria.
“Hearings of the Perth Casino Royal Commission have now concluded. We await the final report, which is due to be provided to the Western Australian Government in early March, and remain committed to working collaboratively with the Government and the regulator on any findings and recommendations that follow.
“At Crown Sydney, we have been encouraged by the demand for our first-class restaurants and hotel when non-gaming operations have been open. We remain in constructive discussions with both ILGA and the independent monitor as we work towards the opening of gaming. Whilst no official opening date has been confirmed by the regulator, we are targeting to be in a position to announce the opening of the gaming floor shortly.
“Crown has world-class assets with a global reputation for premium service and talented people, and our comprehensive reform program will help build a stronger, more sustainable business.”
The release of Crown’s 1H22 results comes just days after the company revealed it has agreed to the sale of all of its shares to US-based private equity giant The Blackstone Group for AU$8.9 billion (US$6.5 billion), pending regulatory and shareholder approval.
