In pre-released remarks, Crown Resorts Ltd (ASX: CWN) chair Helen Coonan has acknowledged a significant protest vote ahead of the company’s AGM today. Shareholders have protested strongly against the re-election of three directors as well as the remuneration report. Although the exact size of the protest vote remains unclear. It is expected that James Packer will vote to save the three directors, as the majority shareholder. Ms Coonan further commented:
Based on conversations with investors in the lead-up to today, I understand the vote on these resolutions reflects dissatisfaction with the performance of the board and the company, particularly in the context of evidence coming out of the ILGA Inquiry.
Shareholders have given a clear and powerful message that board renewal is required, and the board accepts this feedback. Changes will be made.
Crown Resorts CEO Ken Barton also said in later comments that he “did not intend to mislead”. Furthermore, he apologised in writing for an answer to the inquiry related to dealings with Mr Packer’s private company.
Operational performance
The company advised the Perth casino has opened again, albeit under restrictions. Main floor gaming revenue (excluding VIP program play revenue) was up approximately 16% on the prior corresponding period. Meanwhile, non-gaming revenue was down approximately 21% due to continuing constraints driving lower attendance. The company finds this result to be encouraging.
The VIP area, however, has been minimal due to West Australian border restrictions. The company’s wagering and online social gaming revenue increased 34% on the previous period, with revenue growth driven by Betfair.
Construction of the Crown Sydney hotel resort continued throughout the year with the building on track for completion in early December. Once fully operational, it is expected to employ more than 2,000 people. The first residents are expected in March of 2021 after gradually opening from December.
Based on the latest advice, Crown Resorts Melbourne anticipates being able to recommence some limited food and beverage operations in early November.
The future for Crown Resorts
The company continues to work fully with the various regulatory processes and investigations under way. It has also undertaken to faithfully implement its reform agenda so stakeholders can be confident the company has learned from past issues and will not allow them to recur. A number of areas that are being acting upon immediately, and the company stands ready to implement any additional recommendations for improvement.
At the time of writing, the Crown Resorts share price is slightly down 0.18% at $8.36.
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Motley Fool contributor Daryl Mather 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.
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