Operator News
Australia – Crown employs 70 members of staff in Financial Crime & Compliance
By Phil - 5 July 2021
Troubled Australian casino operator Crown has employed 70 members of staff to make sure it stays out of any further regulatory trouble following a series of investigations into its anti-money laundering failings at all its Australian casinos.
Crown stated: “As part of Crown’s Reform Agenda, Crown has been increasing resourcing and capability across a number of key areas, including the addition of a further approximately 70 FTEs across Crown’s Financial Crime & Compliance and Responsible Gaming functions.”
The announcement came in a profit warning where Crown said its results for the 2021 financial year were ‘significantly impacted by the COVID-19 pandemic,’ with Crown’s properties closed for various periods of time and COVID-19 related operating restrictions applying throughout the period, including capacity limits and physical distancing protocols.
For the full year ended 30 June 20211, Crown expects to report theoretical2 EBITDA before Closure Costs and Significant Items of between $240-250m and theoretical EBITDA after Closure Costs but before Significant Items of between $90-100m.
Crown stated: “Crown expects to record a statutory loss after tax for the full year ended 30 June 2021. However, Crown’s statutory result remains subject to review by the Board and management and Crown’s external auditors as part of normal year end processes. Crown expects to report net debt (excluding working capital cash) at 30 June 2021 of approximately $900m, with the $450m project finance facility (which was put in place last year to support the construction of Crown Sydney) having been repaid from settlements to date from Crown Sydney apartment sales.”
Crown intends to release its results for the full year ended 30 June 2021 on 30 August 2021. Crown continues to operate in an uncertain environment with a number of factors expected to impact financial performance throughout the 2022 financial year including COVID-19 related closures and operating restrictions. Performance is expected to continue to be negatively impacted by COVID-19 related closures and operating restrictions as well as travel restrictions, including ongoing international border closures.
Crown is the subject of a number of regulatory processes. The outcome of those regulatory processes may potentially impact Crown’s financial performance. Crown also expects to incur increased corporate costs throughout the 2022 financial year, including legal, consulting and associated costs, whilst these regulatory and any resulting processes continue.
Crown’s ongoing review of its top-end local players is resulting in the exit of a number of customer relationships. Crown continues to monitor and respond to the impacts of the current challenging operating environment.
