Crown Resorts, the biggest operator of land-based casinos in Australia, expects to report a significant decline in earnings for the 2021 financial year, mainly due to the impact of novel coronavirus restrictions on the business.
The company reported that for the 12 months to 30 June 2021 its theoretical earnings before interest, tax, depreciation and amortisation (EBITDA) is forecast to be around 250 million Australian dollars. Compared to the 2020 fiscal year, the decrease is quite sharp, from 503.8 million to just under half of that.
Crown Resorts added that the reported results have been adjusted to exclude the eventual impact of variance from theoretical win rate on the company’s VIP program at the Melbourne, Perth and Crown Aspinalls casinos.
The company had to withstand additional costs during the past year, even when the gaming facilities were closed following government-enforced Covid-19 restrictions. Crown Resorts mentioned that it had to pay staff salaries even while they were not working.
Crown’s venues have been closed for weeks on end over the past 18 months as governments tried to slow the spread of the novel coronavirus. At certain times facilities were able to reopen, but with strict restrictions like capacity limits that had a significant impact on the company’s revenue.