Shares in gaming and entertainment giant Crown Resorts Ltd (ASX: CWN) are inching higher in afternoon trade and are currently quoted at $11.49.
Crown shares have been catching bids this afternoon as investors respond to its presentation at an investor day held at Crown Sydney. Here are the details.
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What did Crown present?
Crown gave a high-level overview of its "cultural transformation program" in its presentation. It includes a new leadership team driving tone from the top, implementing a comprehensive culture transformation program, and rolling new purpose and values across the organisation.
Crown described the value proposition in its equity that is "underpinned by [its] significant property portfolio". Specifically, the portfolio is made up of plant, property and equipment (PP&E) and secure property tenures with leases into the next century. The PP&E carries a book value of $4.3 billion.
It also described investments it has made at each of its major locations over the last 10 years. The company has invested $2.1 billion in Crown Sydney, $1.3 billion at its Perth hub, and $1 billion at Crown Melbourne.
Furthermore, as part of Crown's engagement with regulators, spurred on by a flurry of recent controversies, Crown has developed a comprehensive remediation plan.
The plan is set to tackle issues on culture, responsible gaming and risk management. This also extends to junkets and VIP players at its casinos.
According to Crown, successful implementation of the plan is intended to position Crown as a "leader in the industry in its approach to governance, compliance, responsible gaming and the management of financial crime risk, underpinned by an uplifted organisational culture." Though the claims are not backed by any other official sources or expert opinion.
So far it has met a list of objectives in this regard. This includes restructuring its board and senior management, revising its organisational structure, and developing financial crime and compliance programs. Crown has reportedly ceased dealing with junket operators.
Aside from this, Crown also gave insights into the particulars of "Sydney's first 6-star luxury hotel resort", Crown Sydney.
What about Crown's trading update?
Crown advised it has reopened all 3 domestic resorts. It says that staff shortages are a significant issue across all 3 resorts, impacting operational capacity.
From 12 July to 5 December the company has grown main floor gaming revenue by 5% since FY20. Though it has posted a loss of 8% versus FY21. Non-gaming revenue is up 11% and 31% respectively.
Occupancy has progressively improved in its hotel offering since reopening, averaging around 40% since mid-November with higher occupancy on weekends.
Betfair and DGN revenues over the period 1 July to 5 December 2021 were also down approximately 12% on the previous year.
The Crown Resorts share price is up 18% over the last 12 months, and 19% this year to date. In the past month, Crown shares have popped 17%, well ahead of all benchmarks.
