The Australian gaming behemoth, Crown Resorts, has experienced a dramatic 80% nosedive in earnings this year. This development comes as no shock, as the global health crisis necessitated the shuttering of casinos around the world. Their bottom line now stands at a paltry $79.5 million AUD, a far cry from their pre-pandemic numbers.
The corporation’s income sources throughout Australia suffered a substantial blow, with total revenue contracting by 26%. This downturn was primarily attributed to a steep decrease in patrons frequenting their primary gaming areas, and an even more precipitous decline in earnings from high-roller gamblers, which cratered by 47%.
Despite the gloomy financial outlook, Crown Resorts proceeded with a contentious choice to distribute dividends to investors back in April. This action drew sharp condemnation, especially since it resulted in a $73 million disbursement to James Packer, a principal stakeholder, while the enterprise was concurrently seeking governmental aid to compensate its workforce.
Although Crown customarily disburses dividends bi-annually, the fate of the June payment hangs in the balance. The company’s chief executive, Ken Barton, recognized the unparalleled obstacles confronting the business, stating that the present performance mirrors a period of considerable operational turmoil. He particularly emphasized the effects of travel limitations and physical distancing protocols on their Melbourne establishment.
During March, Crown Resorts was forced to suspend the majority of its gambling operations at both Crown Melbourne and Crown Perth, in addition to a substantial portion of non-gaming activities. This prolonged shutdown has had a major effect on our financial results. Our staff has also been profoundly impacted.
By June 30th, Crown had secured 111 million Australian dollars via the JobKeeper program. Of this sum, 43.4 million was earmarked to cover the salaries of our personnel who are still employed but presently unable to perform their duties. This enables us to maintain operational preparedness and guarantees a rapid resumption of business when restrictions are relaxed.
Moreover, Crown has created a hardship fund to deliver focused financial aid to workers experiencing severe economic strain due to the COVID-19 crisis. This endeavor supplements the numerous other initiatives Crown has enacted to support its workforce throughout these extraordinary circumstances,” Barton added.
Crown expects that its Melbourne personnel will qualify for the next phase of JobKeeper assistance in September. Conversely, Perth employees will not be eligible as they have already resumed their positions.
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