The gaming behemoth, Crown Resorts, witnessed a steep 80% decline in yearly earnings, dwindling to a meager $79.5 million AUD. This sharp downturn, revealed on Wednesday, was attributed to the extensive shutdowns caused by the COVID-19 outbreak.
Throughout their Australian ventures, Crown encountered a 26% revenue reduction, with their primary gaming areas experiencing a 27% decrease. The high-roller sector was impacted even more severely, enduring a massive 47% drop in business, as per data published by the Australian Securities Exchange.
Crown, boasting established casinos in Melbourne, Perth, and London, is also preparing for the grand unveiling of its eagerly awaited Sydney casino in December. Despite halting dividend disbursements following the profit plunge, the corporation faced backlash for controversially issuing dividends in April for the initial half of the financial year. This action led to significant shareholder James Packer receiving a hefty $73 million AUD, even as the company was seeking government wage assistance to sustain its employees. Customarily, Crown investors receive dividends of 30 cents per share every six months. Nevertheless, the company has yet to declare a dividend for the June term. Ken Barton, Crown’s Chief Executive Officer, conceded that this year’s outcomes followed an unparalleled period of operational challenges. “Commencing in late January 2020, Crown’s operations began to experience strain as travel limitations and public apprehension surrounding the COVID-19 pandemic took effect, particularly impacting attendance at Crown Melbourne,” he remarked.
The March financials for Crown Resorts took a substantial hit due to prolonged shutdowns at their Melbourne and Perth locations. These government-imposed closures were part of the COVID-19 response and resulted in a drastic reduction of most gaming and some non-gaming services. The impact on the group’s staff was also significant.
To maintain operations and guarantee a rapid reopening when restrictions were lifted, Crown obtained AUD 111 million in “JobKeeper” assistance for the period concluding June 30th. Of this sum, AUD 43.4 million was allocated directly to cover the salaries of personnel who could remain employed.
Moreover, Crown CEO Ken Barton emphasized the creation of a relief fund to deliver focused financial aid to workers experiencing severe financial strain because of the pandemic. This fund supplements numerous other programs implemented by Crown to support its workforce during these extraordinary circumstances.
Looking forward, Crown expects its Melbourne personnel to qualify for the subsequent phase of the “JobKeeper” program in September. However, Perth employees will not be eligible as operations there have already recommenced.
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