SkyCity expects group FY24 EBITDA to be equal to or below FY23
Updated trading guidance from SkyCity has announced that the group’s year EBITDA will be down, countering previous guidance.
SkyCity Entertainment has reported updated trading guidance for its FY24 EBITDA, adjusting previous guidance following the first five months of group trading.
Trading guidance released by the operator in late October stated an expected FY24 EBITDA that reflected a: ‘Modest year-on-year increase in group normalised EBITDA’, based on the group’s FY23 normalised EBITDA of NZ$310m (US$189.3m). Now, the group has advised against this, instead expecting a NZ$290m – NZ$310m normalised EBITDA for FY24.
SkyCity gave four primary reasons for this updated trading guidance. Firstly, it cited reduced revenue from electronic gaming machines in New Zealand, followed by a ‘weaker than expected performance’ from its Adelaide location.
The location faced several issues this year, including the need for an independent review on anti-money laundering and counter-terrorism, as ordered by the South Australian Liquor and Gambling Commissioner Dini Soulio. This later resulted in the appointment of consultancy firm Kroll Australia as an Independent Monitor.
It also cited a delayed settlement payment with MPF Parking NZ and accelerated investment in New Zealand online gaming operations, ahead of potential market regulation.
Alongside the updated normalised EBITDA, the group’s NPAT (net profit after tax) for FY24 has been guided at NZ$125m – NZ$135m, citing the aforementioned settlement delay as a reason for reduced financing costs.
SkyCity CEO Michael Ahearne has stated his resignation from his position starting in early 2024, though it seems no name has yet been given to his replacement.
In February, the company will release its FY24 interim results, where it can be confirmed whether the updated guidance reflected the final results.
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