The Crown Resorts Group experienced a substantial financial setback, with its revenue for the fiscal year plummeting to $1.1 billion.
This Australian gaming corporation disclosed a statutory revenue of AU$1.5 billion (US$1.1 billion) for the fiscal year concluding June 30, 2021, marking a sharp 31% decrease from the preceding year. Their profits before taxes suffered an even greater blow, plunging by 77% to AU$114.1 million, ultimately pushing the company into a net deficit of AU$2.616 billion.
The corporation attributed these financial losses primarily to the COVID-19 pandemic, specifically citing the accompanying restrictions and safety protocols. The temporary shuttering of some of their casino properties, including the flagship locations Crown Melbourne and Crown Perth, also played a considerable part.
“2021 presented extraordinary difficulties for Crown,” acknowledged Jane Halton, Crown’s Interim Chairman. “The company encountered intense regulatory examination and the unparalleled effects of the pandemic on our business activities. However, Crown’s foremost concern remained the well-being and security of our workforce, patrons, and the broader community, and we wholeheartedly endorsed the measures implemented by both state and federal authorities.”
Notwithstanding the general decline, Crown Perth reported a 21% rise in theoretical revenue, reaching AU$74.28 billion. This was largely attributed to their main gaming floor which generated AU$47.83 billion, and non-gaming revenue which yielded AU$26.41 billion. Conversely, Crown Melbourne experienced a decline in theoretical revenue to AU$58.25 billion, with the primary gaming floor accounting for AU$40.69 billion of that sum. Their VIP program revenue witnessed a dramatic 98% decrease, shrinking to a mere AU$44 million. As for Crown Sydney, only a limited segment of its non-gaming operations commenced public access on December 28th.
“Crown’s year-end financial outcomes mirror the substantial impact COVID-19 exerted on the enterprise,” stated Alan McGregor, Crown’s Chief Financial Officer.
The Melbourne casino’s gambling activities were closed for a large part of the financial year. When they were operational, capacity limits were in place.
Crown Perth had a strong performance. Conversely, Crown Sydney posted an operating loss overall because of pandemic limitations, travel bans, and reduced operational capacity.
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