Crown Resorts projects $676 million debt for financial year 20/21

Crown Resorts projects net debt of $676 million for the financial year ended June 30, 2021. The company’s EBITDA after closing costs is forecast at $75 million. Therefore, Crown already estimates that it will record an after-tax legal loss for the year.

Last year’s $340 million project finance facility, designed to support the construction of the Crown Sydney, “has been reimbursed for deals made so far with the sale of Crown Sydney apartments.” Detailed results are due to be published by August 30th.

Crown said the falling numbers are due to multiple closures due to the pandemic, as well as operational restrictions related to Covid-19 that extended over the period; including capacity limits and physical distance protocols.

The operator added that there are a number of factors that are likely to continue to impact Crown’s performance in 2022. The list includes closures still linked to Covid-19 and travel restrictions, which limit the number of people willing to visit other locations.

In addition, ongoing regulatory processes could end up affecting Crown’s financial performance. “Crown also expects to have rising corporate costs through the 2022 financial year,” the organization said in an official statement.

The numbers can also be impacted by a company’s investment in responsible gaming and compliance strategies. “Crown continues to monitor and respond to the challenging impacts of the current operating landscape,” the statement continued.

The official note continued: “Crown is also conducting a review process for potential underpayment of gaming tax mentioned recently in the Victorian Royal Commission and will update the market once its review is complete.”

About Crown Resorts

Crown Resorts Limited is Australia’s largest gaming and entertainment group. The group owns and fully operates two of the country’s leading gaming complexes, Crown Melbourne and Crown Perth.