Crown Resorts scraps its dividend as venue closures cause profit to tumble

Entertainment group Crown Resorts has ditched its dividend as lockdown restrictions continue to impact profits.

Crown Resorts has ditched its final dividend payout to shareholders Picture: NCA NewsWire / Jeremy Piper

Crown Resorts has ditched its final dividend payout to shareholders.

Forced lockdowns of its Melbourne and Perth casinos during the coronavirus pandemic dented Crown’s financial result.

The James Packer-backed gaming group posted a net profit of $79.5 million for the 12 months ending June 30, an 80.2 per cent tumble on its 2019 financial year result.

Crown’s reported earnings were down 40.6 per cent to $504.6 million, with main floor and VIP gaming both taking substantial revenue hits.

The major casino said ongoing uncertainty surrounding the reopening of its Melbourne operations had forced it to not issue a final dividend.

Crown’s dividend policy is to pay 60 cents per share on a full-year basis subject to its financial position.

Crown was forced to lay-off the majority of its staff due to COVID-19. Picture: AAP Image/Michael Dodge

Crown’s chief executive Ken Barton said travel restrictions had impacted the company since late January, with the group being forced to stand down the majority of its workforce during the peak lockdown period.

“Crown began to experience softer trading conditions as a result of travel restrictions and general community uncertainty in response to COVID-19, particularly impacting visitation to Crown Melbourne,” he said.

“These closures have also had a substantial impact on our people, with approximately 95 per cent of our employees stood down following closure.”

A large proportion of Crown employees have been eligible to receive JobKeeper payments.

A large proportion of Crown employees have been eligible for JobKeeper payments. Picture: AAP Image/Michael Dodge

The casino revealed it had recorded $43.4 million from the wage subsidy scheme for employees who had continued to work in either a full time or partial capacity. A further $67.9 million in JobKeeper payments were recorded in the same period for staff who were fully stood down.

Main floor gaming revenue fell 26.9 per cent to $1.2 billion, while its VIP player turnover stooped 46.5 per cent to $20.4 billion.

Mr Barton said construction on its Crown Sydney project was not forced to close during the height of the lockdown measures.

“Despite the challenges of COVID-19, the construction of Crown Sydney has continued throughout this period, and it’s a credit to our team that it remains on track for its scheduled December opening,” he said.

Crown Perth resumed gaming activities on June 27, while the Melbourne and London gaming venues remain closed.