- Crown Resorts (CWN) is bracing for a loss this year following the impact of sweeping COVID-19 restrictions and regulatory investigations
- It said EBITDA before closure costs and significant items is expected to be between $240 million and $250 million
- After closure costs, however, Crown said that figure is likely to fall to between $90 million and $100 million
- Crown said the outlook for the 2022 financial year continues to be “uncertain” with continued lockdown measures and ongoing inquiries
- Shares in Crown Resorts are down 1.01 per cent to $11.80 as of 12:35 pm AEST
Crown Resorts (CWN) is bracing for a loss this year following the impact of sweeping COVID-19 restrictions and added costs from regulatory investigations.
For the year ending June 30, the entertainment giant said it expects theoretical earnings before interest, taxes, depreciation and amortisation (EBITDA) before closure costs and significant items to be between $240 million and $250 million.
After closure costs, however, Crown said that figure is likely to fall to between $90 million and $100 million.
“Crown expects to record a statutory loss after tax for the full year ended 30 June 2021,” the company said in a statement this morning.
“However, Crown’s statutory result remains subject to review by the Board and management and Crown’s external auditors as part of normal year end processes.”
Crown also noted that net debt is likely to be around $900 million, after a $450 million facility to support the construction of its Sydney operations was paid back using the proceeds from the sale of apartments at the project.
Looking ahead, Crown said the outlook for the 2022 financial year continues to be “uncertain”.
Among several concerns, Crown cited the ongoing impact of lockdowns and other COVID-19 restrictions as a risk to its business, as well as a number of regulatory processes that are likely to increase corporate costs, including legal and consulting expenses.
“Crown continues to monitor and respond to the impacts of the current challenging operating environment,” the company added.
“Crown is also undertaking a review of the potential gaming tax underpayment recently referred to in the Victorian Royal Commission and will update the market once Crown’s review is complete.”
Shares in Crown Resorts are down 1.01 per cent to $11.80 as of 12:35 pm AEST.