Crown Resorts, the Australian operator, witnessed a decrease in revenue. That covers the 6-month period that ended on the 31st of December, as announced by the Australian Gambling operator. The revenue fell down to reach AUS$581 million, which is a decrease of 62.1%. It was a tumultuous period for everyone, and for Crown Resorts especially. The Australian gambling operator witnessed a loss of $120.9 million.
Australian Gambling Operator – Crown Resorts – Negative Revenue Numbers
The great decline in the revenue was due to the current events and the closure of its venues. The closure included its flagship venue, the Crown Melbourne venue, which was closed for business for most of the 6-month period. On the other hand, Crown Perth re-opened its doors in late June of 2020. According to the CFO, Alan McGregor, the property exceeded the expectations in terms of performance since the re-opening.
The CFO also said that the main gaming floor opened with a strong performance, with its performance moderating across the half. As for non-gaming revenues, the capacity constraints strongly impacted it, along with the reduced foot traffic. Although, it was still able to show improvement, through the half, especially in the summer holiday season, despite the restrictions.
Crown Melbourne started its operations once again in November, although with limited access to the Australian gambling property. The government eased the restrictions on the 9th of December, and the results showed great improvements. On the other hand, the results continued to be negatively impacted by the capability limitations.
Crown Sydney Re-Opens, but License Inquiry Holds it Back
As for Crown Sydney, it opened in December 2020 for the first time. On the other hand, the gaming operations did not open because of the inquiries into the license of operations. Last week, a full report was published by the inquiry. The report showcased that the Australian gambling avenue was not suitable to operate its casino. Although it pointed out that it can operate once again if it commits to making some changed. For example, that includes ending the ties with junket operators and conducting compliance and financial audits. Following the release of this report, the CEO, Ken Berton, stepped down. Taking over his place on an interim basis was the Executive Chairman, Helen Coonan.
Helen Coonan made it clear that Crown has welcomed the Commissioner’s report, despite the uncomfortable reading at times. She added that they see it as a chance for a comprehensive and complete corporate reset. She also said that they recognize the need for swift and immediate action. They will drive the corporation in the right direction to achieve the change that the commissioner wants. She also made it clear that Australian Gambling operator, Crown, will work constructively alongside the ILGA to advance the necessary reforms.