Crown’s overall theoretical revenue for casino games was AU$778.6m, a year-on-year increase of 34.0%.
The majority of the revenue, AU$402.9m, was generated by Crown Perth, with a slight decrease of 1.5% compared to the previous year. Most of this revenue came from wagering and non-gaming activities, totaling AU$166.4m. Main floor machines contributed AU$157.2m, while main floor tables generated AU$79.3m. Crown Perth had the shortest closure period during the Covid-19 lockdowns, being closed only from July 1 to July 5, 2021.
Crown Melbourne, which was closed for 96 days in the half-year, saw a significant year-on-year rise of 172.9% in revenue, reaching AU$265.0m. Main floor table revenue accounted for AU$115.2m, while wagering and non-gaming revenue amounted to AU$77.4m and main floor machine revenue reached AU$72.4m.
Crown Sydney, which has not yet received permission to open its casino, generated AU$36.1m from non-gambling means, a significant increase of AU$35.2m from the first half of 2021. The venue was closed for 102 days during this period.
Crown Aspinalls in London, the only Crown venue with VIP revenue, brought in AU$7.9m. VIP play accounted for AU$7.4m, while wagering and non-gaming activities contributed AU$500,000. The theoretical revenue for Crown Aspinalls was AU$5.6m.
Wagering and online revenue across the group generated AU$69.5m, showing a decrease of 12.7% year-on-year. Wagering and non-gaming accounted for AU$349.9m of the overall revenue, with main floor machines generating AU$229.5m and main floor tables contributing AU$194.5m. VIP programme play made up AU$5.1m.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) were recorded at AU$28.8m. Closure costs amounted to AU$113.1m, while income from other significant items generated AU$39.1m. The business incurred a loss of AU$45.2m before interest, tax, depreciation, and amortisation. Depreciation and amortisation expenses reached AU$115.1m, and asset impairment costs were AU$31.8m. This resulted in a loss before interest and tax of AU$232.1m. After considering theoretical adjustments, income tax benefits, equity accounted shares, and net interest, the overall net loss for the half-year was AU$196.3m, an increase of $75.9m compared to the previous year’s loss in the first half.
Crown’s performance in the first half was affected by challenging operating conditions due to Covid-19 and ongoing regulatory matters. The company is committed to building a stronger business, implementing reforms, and cooperating with regulators to ensure a safe and responsible gaming operation.
Crown recently accepted a takeover bid of AU$8.9bn from Blackstone Inc. The board unanimously accepted the proposal, which marks an increase from Blackstone’s initial bid. As part of the acquisition, Blackstone will pay $13.10 in cash per share, estimated to be a 32% premium from the closing share price on November 18, 2021, Crown’s final day of trading before the proposal.
Last year, Crown resorts faced regulatory challenges, with the Royal Commission in Victoria deeming the company “unsuitable” to operate Crown Melbourne. Crown did not lose its license but must adhere to special measures and recommendations. The company is working collaboratively with the special manager, the Victoria Gambling and Casino Control Commission, and regulatory processes to establish a safe and responsible gaming environment at Crown Melbourne.
The Bergin Inquiry in New South Wales also investigated Crown’s eligibility for a casino license in Sydney, ultimately deeming it “unsuitable” but allowing the company to continue operating the casino after implementing reforms.
