Crown Resorts ‘embarking on new chapter’ after profit turnaround

Crown Resorts is finally in clean air after returning to profit and paying off the last of the hefty fines slapped on the casino group over a string of reputation-sapping historic scandals.

Citing a significantly improved financial result that was supported by another good year by Crown Perth, chief executive David Tsai on Wednesday reckoned “Crown has turned the corner” after three unexpectedly tough years since the sale of the business to private equity group Blackstone.

Mr Tsai said Crown was entering “a new chapter”, marked by improved financial performance, operational stability and a renewed focus on growth.

“It’s been really tough the last few years ... now we have to focus on the core of the business,” he told The West Australian, calling out Crown’s plans to add new food, entertainment and nightlife offerings at its Perth, Melbourne and Sydney resorts.

New financial results show further cutbacks, including redundancies, and a resumption of revenue growth helped push Crown back into the black in the 12 months to June 30, the group recording a net profit of $142.2 million after the previous year’s $164.8m loss.

The improvement in underlying earnings was equally as dramatic, with earnings before interest, tax, depreciation and amortisation leaping from $156m in the 2024 financial year to more than $450m.

Revenue only grew by 2 per cent to $2.83 billion, but the renewed growth has further reinforced management’s view that Crown is over the worst.

The group was hit with $700m of fines after inquiries in WA, NSW and Victoria found it facilitated money laundering at its casinos in three States, engaged with junket operators linked to crime syndicates and didn’t do enough to minimise gambling-related harm.

The fines included $450m levied by financial crimes watchdog AUSTRAC, the final instalment of which was paid recently by Crown.

The accounts show that Crown’s flagship property in Melbourne is improving but still giving up revenue, as Blackstone seeks to rejuvenate the gaming and hospitality complex with new restaurants and lure back gamblers deterred by the introduction of carded play in October 2023.

More to come.