Crown Resorts cops $1 billion in losses as penalties bite

Crown Resorts has recorded a loss of just under a $1 billion for the last financial year as the combination of financial penalties, extensive investment in compliance and COVID-19 restrictions outweighed the group’s profits.

The casino giant, owned by US investment management powerhouse Blackstone, lodged a net loss of $945.4 million for fiscal 2022 with ASIC on Tuesday, its first results as a private company.

Crown’s earnings before interest, tax, depreciation and amortisation (EBITDA) – the metric heavily watched by investors – fell to a loss of $699.6 million, with $710.1 million in significant items. Statutory revenue for the period landed at $1.9 billion, up 20 per cent on the prior comparable period.

Revenues at Crown Melbourne increased from $567.5 million to $923.8 million and grew from $68.4 million to $113 million at Crown Sydney, while Crown Perth fell from $740.9 million to $731.7 million. Crown Sydney’s gaming floor was not operational during 2022.

A Crown representative blamed a number of actors for the poor performance, saying the results had been heavily affected by a series of one-off regulatory provisions and should not be taken as a forward view of operating performance.

“The financial performance reflects the challenging environment faced by Crown during the pandemic, with significant impact on our operations, particularly in the first half,” the 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 has a strong desire to continue to invest in its business, jobs, the industry, and community,” the spokesperson added.

The casino operator’s expenses grew from $1.98 billion in 2021 to more than $3.09 billion in 2022. Regulatory costs, coming in at $617.2 million, were the biggest weight on Crown’s books. This figure includes provisions for the looming AUSTRAC enforcement investigation and penalties from other regulators.