Crown’s share price fell by around 30% from February due to the Federal government's latest decision to shut down most nonessential public venues, including casinos, from March 23. Immediate earnings impact is dire, as evaporating revenue is compounded by large fixed cost structures which take time to rationalise. Attempts to dimension the financial hit are futile, given the uncertainty on how long it will take for COVID-19 to be contained and when normality may subsequently return.
However, Crown benefits from its solid balance sheet with strong liquidity position. Crown's net debt/trailing normalized EBITDA is 0.5x,