The Crown Resorts Ltd (ASX: CWN) share price has been resilient this morning after the company released its annual result for the year to 30 June 2020. At the time of writing, the Crown share price was down just 0.53% to $9.44 following the release.
What was in the announcement?
Crown reported earnings before, interest, tax, depreciation and amortisation (EBITDA) of $504.6 million, these were down 40.6% compared to the prior year.
Reported net profit after tax was $79.5 million, a drop of 80.2%. According to Crown’s CEO, Ken Barton, the company was directed to close its gaming activities and a significant part of its non-gaming operations at Crown Melbourne and Crown Perth for a significant amount of the financial year. Mr Barton stated that these closures were reflected in the company’s financial results.
Crown incurred costs related to its government mandated closures of $81.6 million which affected its results. It also recorded significant items of $78.7 million after tax which it stated were related to the impairment of Crown Aspinalls and Nobu, Crown Sydney pre-opening costs and costs related to a reassessment of DGN contingent consideration.
The company announced that the construction of Crown Sydney remained on track and it expects the asset to open to the public in December as scheduled.
Crown determined that, although its dividend policy is to pay 60 cents per share on a full year basis subject to the company’s financial position, that it would not pay a final dividend for the period. The company stated that this was due to the impact of mandatory closures on Crown’s business and uncertainty surrounding the resumption of trading at Crown Melbourne. It stated that future dividends would be subject to Crown’s financial position at the time.
About the Crown share price
Crown is one of Australia’s largest entertainment groups. It operates resorts, casinos, bars, restaurants and online betting facilities. Crown has been listed on the ASX since 2007.
The Crown share price is up 67.38% from its 52-week low of $5.64, however, it is down 21.46% since the beginning of the year. The Crown share price is down 16.97% since this time last year.
These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- 5 things to watch on the ASX 200 next week
- Why Tabcorp is the latest “conviction buy” recommendation from this top broker
- Earnings preview: What to expect from the Crown Resorts FY 2020 result
- Village Roadshow locked in a capital raise as it secures new $70m facility
- Why Crown, Fortescue, Kogan, & Nearmap shares are storming higher
Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Crown share price resilient on full year result appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3haUAhZ
Leave a Reply