For the 12 months to 30 June 2021, Crown forecasts a theoretical EBITDA (earnings before interest, tax, depreciation, and amortization) of AUD$240m to $250m, a significant decrease compared to the previous year’s $503.8m. Theoretical EBITDA after closure costs is expected to be between $90m and $100m for the financial year. Crown has excluded the impact of variance from theoretical win rate on VIP program play at its casinos in Melbourne, Perth, and Crown Aspinalls. Closure costs incurred during the year include staff salaries during government-enforced Covid-19 closures.
Crown’s properties have experienced intermittent closures due to Covid-19 restrictions. Though able to open with operating measures such as capacity limits and social distancing protocols, Crown expects a decline in EBITDA and a statutory loss after tax for the full year. Net debt is forecasted to reach $900m by the end of the financial year, with a $450m project finance facility already repaid. Full results for the 2021 financial year will be published on 30 August.
Looking ahead to the 2022 financial year, Crown anticipates various factors impacting its financial performance. These include ongoing Covid-19 closures, operating restrictions, travel limitations with closed international borders, and the exit of certain customer relationships resulting from the review of top-end local players. Regulatory processes and related costs could also harm financial results. Crown recently incurred a $22.5m payment following regulatory measures in New South Wales.
Crown is currently subject to takeover bids from multiple parties. Blackstone Group offered to acquire all remaining shares for $8.02bn, later raising the offer to $12.35 per share, which Crown rejected. Star Entertainment Group proposed a merger valued at approximately $12.00bn, requiring more information for Crown’s decision. Oaktree Capital Management also submitted a funding proposal worth $3.1bn, to which Crown’s board has yet to respond.
