Crown Resorts Annual Earnings Plummet 80% Due to COVID-19 Impact

The Australian gaming behemoth, Crown Resorts, witnessed its yearly earnings nosedive by a substantial 80% to a paltry $79.5 million, a direct result of the COVID-19 outbreak and the subsequent shutdowns. This disclosure, released on Wednesday, sent shockwaves through the financial sphere. The corporation’s income across all its Australian ventures took a 26% blow, with the general gaming division encountering a 27% decrease and the high-roller gaming division suffering the most with a colossal 47% plunge.

Despite the economic setback, Crown, which manages casinos in Melbourne, Perth, and London, is forging ahead with the grand unveiling of its highly-awaited Sydney casino in December. Nevertheless, the firm’s choice to distribute an interim dividend in April, an action that enriched its principal investor James Packer with a tidy $73 million while concurrently requesting government salary assistance for its workforce, ignited considerable debate.

Although investors usually obtain a 30 cents per share payout every six months, Crown has yet to reveal its intentions for the June dividend. Ken Barton, Crown’s Chief Executive Officer, described the year’s outcomes as a manifestation of an unparalleled decline in activities. “The effects of travel limitations and the overall ambiguity surrounding the global health crisis, which started to impact us in late January 2020, have been substantial, especially on our Melbourne operations,” he remarked.

Imperial Leisure encountered a need to briefly shutter a majority of its gaming establishments situated in Melbourne and Perth during the previous March. This closure stemmed from limitations imposed in response to the COVID-19 outbreak, resulting in a prolonged period of inactivity. As anticipated, our economic performance experienced a decline, a trend clearly observable within our financial records. Furthermore, these closures have carried significant ramifications for our workforce.

By the date of June 30th, Imperial Leisure had procured 111 million Australian dollars through the utilization of the JobKeeper initiative. Of this sum, 43.4 million has been allocated towards sustaining wage payments for our personnel and ensuring operational readiness for a prompt resumption of business activities once the imposed limitations are relaxed.

The Chief Executive Officer of Imperial Leisure, Mr. Barton, conveyed, ‘Furthermore, we have established a dedicated fund to provide supplementary assistance to our staff members who are confronting difficult circumstances as a consequence of the pandemic. Additionally, we have implemented a range of other initiatives aimed at supporting our personnel throughout this demanding period.’

Imperial Leisure anticipates that its Melbourne-based employees will be recipients of a subsequent installment of JobKeeper disbursements in September. Conversely, employees located in Perth will not be eligible for further payments, given their prior reinstatement to active duty.