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SkyCity expects normalised profit of $84m for FY21

Operator SkyCity Entertainment Group has provided detailed guidance for its 2021 financial year.

SkyCity

According to the brand's statement, if none of the group’s properties close their doors before 30 June, SkyCity expects FY21 normalized NPAT (net operating profix after tax) of between $84-88m and normalised EBITDA of between $247-253m.

The group reported strong performance from local gaming businesses in New Zealand, with a focus on electronic gaming machines. Both SkyCity Adelaide, after its reopening in December 2020, and SkyCity Malta saw encouraging performance.

However, most of the company's revenue has come from domestic tourists, particularly during weekends or holidays, as despite the Trans-Tasman border openings, international travel to both Australia and New Zealand remains heavily restricted due to safety regulations.

Despite these setbacks, SkyCity expects to “comfortably meet its financial covenants for the 30 June 2021 testing period and pay a final dividend in September”. FY21 results should be released on 25 August 2021.  

And yet the operator's financials have prompted earnings of another kind, with SkyCity earning some criticism from the public.

Hamilton City Council may require SkyCity's Hamilton casino to follow the trend of other venues around the country and contribute 40% of its proceeds from pokie machines to the community.

Currently, the venue is assigned to pay 1.5% of its pokie profits. According to law, pubs and clubs where you might find gaming machines are required to pay 40% of proceeds, but casinos have no such rule implemented.

SkyCity Auckland reportedly gives away only 0.7% or a minimum of $500,000. There’s also a suggestion that all six of New Zealand’s casinos should pay 40% of all gambling proceeds to support local communities.

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