Crown share price resilient on full year result

The Crown share price was resilient today after the company released its annual result for the year to 30 June 2020.

man playing cards with casino chips representing crown share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »