Crown Resorts expects net debt of $676 million for fiscal year 20/21

Crown Resorts expects net debt of A$900 million ($676 million) for the year ending June 30, 2021.

The company’s EBITDA after closing costs is expected to be between A$90 million and A$100 million. Crown also expects to record an after-tax statutory loss for the full year.

Last year’s A$450 million project finance facility to support the construction of Crown Sydney was reportedly ‘repaid from settlements to date on Crown Sydney’s apartment sales’. The full results of the exercise are expected to be released on August 30.

Crown said the lower figures were due to various closures, due to the ongoing pandemic, as well as Covid-19 related operating restrictions that applied throughout the period; including capacity limits and physical distancing protocols.

The operator added that a number of factors are likely to continue to impact Crown’s performance through 2022.

These include Covid-19 related closures and travel restrictions, which impact the number of guests visiting the venues. Another factor is ongoing regulatory processes which may ultimately affect Crown’s financial performance.

“Crown also expects business costs to increase throughout fiscal 2022, including legal, advisory and related costs, as these regulatory processes and all resulting processes continue,” the organization said in a statement.

The figures could further be impacted by the company’s investment in responsible gaming and compliance strategies, as part of Crown’s reform program. Finally, Crown said it was reviewing its high-end local players, a process that resulted in the termination of a number of customer relationships.

“Crown continues to monitor and respond to the impacts of the current challenging operating environment,” the statement continued.

“Crown is also undertaking a review of the potential gambling tax underpayment recently mentioned in the Victorian Royal Commission and will update the market once Crown’s review is complete.”

Ann J. Cox