Crown Resorts has posted its first profit in five years after strategic restructuring and the final payment on a hefty fine by Australia’s financial crimes watchdog.
The group reversed an AU$164.8 million ($108.3 million) loss in the previous financial year ending June 30th, turning to a AU$142 million ($93.32 million) profit in this financial year. This is the first profit registered since the 2019-2020 fiscal year.
This is good news for Blackstone, which acquired Crown Resorts in 2022 for some AU$8.9 billion ($5.85 billion).
The group has also paid out its final installment on a AU$450 million ($295.7 million) fine for breaches of AML/CTF laws.
Overall, revenue was up 2 percent, to AU$2.8 billion ($1.84 billion), despite lagging international tourism. Revenues were also pressured by new problem gambling mitigation measures – including mandatory ID for EGMs and cash spending limits. This particularly affected Crown Melbourne, whose revenues dropped by 1.3 percent to AU$1.4 billion ($920 million). However, Crown Sydney revenues were up by 22.1 percent and those of Crown Perth rose by 4.7 percent.
Chief Executive David Tsai noted that the results open a new chapter for the operator, stating “these results demonstrate we’re heading in the right direction”. However, the executive cautioned that “the company continues to navigate a complex regulatory landscape and economic headwinds”.
