Crown Resorts 1st Half Net Loss Increases After Properties Shut Due to Covid-19

   By Mike Cherney 
 

SYDNEY--Australian casino operator Crown Resorts Ltd. said its net loss deepened in the fiscal first half, as Covid-19 prompted the closure of some of its properties for much of the period.

Crown said its statutory net loss was 196.3 million Australian dollars (US$141 million) in the six months ended in December, compared to a net loss of about A$120 million in the prior period. Revenue, however, rose 34% to A$778.6 million. Theoretical earnings before interest, tax and other items, or Ebitda, was A$28.8 million, down about 80%--a measure that strips out volatility in VIP win rates.

No interim dividend was declared.

"Crown's first half performance reflects the continued challenging operating conditions as a result of Covid-19 as well as the impact of ongoing regulatory matters," said Chief Executive Steve McCann.

Looking ahead, Crown said the outbreak of the Omicron variant in recent months had adversely impacted trading to start the calendar year. It said average weekly revenue at Crown Melbourne, for example, was down 16% in the first six weeks of the calendar year.

The company said its outlook is uncertain, noting that the outcomes of various regulatory matters and litigation are unknown. It also said the unclear timing of the Western Australia border opening creates uncertainty for the business performance of its casino in Perth in the fiscal second half.

Crown, however, said it remains confident in the underlying value of the business and that it is ready to leverage its assets to take advantage of pent-up demand as Covid-19 restrictions ease.

Crown has been faced with numerous inquiries from regulators over its business practices that could threaten its casino licenses. Earlier this week, Crown said it had agreed to a $6.3 billion takeover by Blackstone Inc., following a roughly yearlong effort by the U.S. private-equity giant to acquire the company.

Write to Mike Cherney at [e-mail]

(END) Dow Jones Newswires

February 16, 2022 17:56 ET (22:56 GMT)

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