The full extent of Crown Resorts’ troubled year was laid bare on Tuesday with the Australian casino giant revealing a near AU$1 billion (US$679 million) loss for the year ended 30 June 2022.
In information lodged with the Australian Securities and Investments Commission (ASIC), Crown confirmed a net loss of AU$945.4 million (US$642 million) in FY22, despite revenue rising 20% year-on-year to AU$1.9 billion (US$1.29 billion). The company also reported an EBITDA loss of AU$699.6 million (US$476 million).
Crown’s troubled year faced multiple headwinds, including the impact of the COVID-19 pandemic nationwide and regulatory actions taken by state regulators. Having been found unsuitable to retain its casino licenses in all three states, Crown was also whacked with AU$200 million (US$136 million) in fines by the Victorian Gambling and Casino Control Commission (VGCCC) for various transgressions at Crown Melbourne uncovered during last year’s Royal Commission.
“The financial performance reflects the challenging environment faced by Crown during the pandemic, with significant impact on our operations, particularly in the first half,” a spokesperson said.
“During the year, Crown also navigated significant regulatory matters. These matters are ongoing, and we continue to cooperate with the relevant parties on resolutions.”
Crown’s FY22 results included a 63% increase in revenues at Crown Melbourne to AU$923.8 million (US$628 million) and a 1.2% decline at Crown Perth to US$740.9 million (US$504 million), while non-gaming operations at Crown Sydney contributed AU$113 million (US$77 million) – up from AU$68.4 million (US$47 million) a year earlier. The gaming floor at Crown Sydney didn’t open until August after receiving the green light from the NSW gaming regulator.
They also signal a rough start for US private equity giant The Blackstone Group, which completed its acquisition of Crown in June.