SkyCity Entertainment H125 underlying group NPAT down 41%
The group anticipates FY25 underlying group EBITDA will experience a drop.
Key points:
– Group revenue down to NZ$422m
– Lower customer spend on visitation levels impacted revenue and EBITDA
SkyCity Entertainment Group has released figures for the six-month period ended 31 December 2024 (H125).
Group revenue was NZ$422m (US$241.7m) for the period, representing a fall of 5% year-on-year, while group EBITDA fell 22% to a figure of NZ$113m.
Both of these were impacted by lower customer spend on visitation levels, while gaming revenue in Auckland was affected by factors such as a five-day closure of gaming operations, weaker market conditions and a change in overall customer mix, according to the operator.
A positive, however, was that SkyCity’s hotels did perform well during H125, with total rooms sold up 16% and the occupancy rate set at 73%. SkyCity Adelaide experienced a visitation rise of 10%.
Underlying group NPAT decreased 41% compared to H124, being valued at NZ$38m, which occurred owing to lower level of earnings and increased costs.
In response to these results, underlying group EBITDA guidance for the full year of FY25 has been revised, with the figure expected to be between NZ$225m and NZ$245m. Previous guidance had the number between NZ$245m and NZ$265m.
Good to know: In New Zealand, SkyCity is planning to introduce mandatory carded play across its properties in July 2025, with SkyCity Adelaide planning to introduce it in 2026
SkyCity also mentioned that a review of assets had been completed, with a five-year master plan created, as the group looks to reduce debt, resume paying dividends to its shareholders and create growth opportunities.
SkyCity CEO Jason Walbridge said: “We continue to operate in challenging market conditions with subdued consumer confidence, so we’re pleased to see strength in our visitation numbers as people continue to enjoy coming to SkyCity for their entertainment.”
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