Australia's Crown Resorts set to report annual loss, sees 'challenging' fiscal 2022

[BENGALURU] Australia's Crown Resorts said on Monday Covid-19 lockdowns as well as corporate and regulatory costs will likely hit its earnings in the current year as the casino operator expects to report a loss for the year ended June.

On top of the lockdowns, Crown has been hit by a series of scandals from knowingly dealing with tour operators linked to organised crime to disregarding the safety of staff in China who were jailed in 2016 for breaching its gambling ban.

An inquiry last year declared the company unfit for a gambling licence at its new Sydney resort, and also levelled criticism over the influence of its founder and largest shareholder James Packer.

The scandal-hit company did not provide an exact value for its expected loss, but will report results on August 30.

It said core earnings after closure costs and other items is expected between A$90 million to A$100 million (S$91.1 million to S$101.3 million), while net debt at June 30 is likely A$900 million.

For fiscal 2022, Crown said it continues to monitor the "current challenging operating environment."

Crown is also at the receiving end of at least three different offers for it. Star Entertainment has offered an all-stock buyout worth around A$9 billion, while Blackstone Group raised its all-cash bid to A$8.4 billion.

Oaktree Capital is offering to buy out Mr Packer's stake, in a deal that would give the private equity firm a 10 per cent stake.

REUTERS