Key points:
- SkyCity has adjusted its FY25 EBITDA guidance following continued market deterioration
- The operator expects FY25 EBITDA to fall 4% below the low end of its NZ$245m – NZ$225m guidance
SkyCity has released an update to its FY25 earnings guidance.
Following its H1 25 results, which saw group revenue down 5% year-on-year to NZ$422m (US$241.7m) and underlying group net profit after tax (NPAT) down 41% to NZ$38m, SkyCity announced that market conditions have continued to deteriorate.
As such, the operator projects that its FY25 EBITDA will fall 4% below the low end of its NZ$245m – NZ$225m guidance.
In both its H1 25 results and its latest press release, SkyCity noted that, while visitation held steady across the board, with total rooms sold up 16% according to its H1 25 report, its Auckland property has seen reduced spend per visit in gaming and hospitality.
SkyCity Adelaide has also faced challenges, with lower visitation and lower VIP spend. This is in part due to improved anti-money laundering (AML) and harm minimisation efforts at the property, following an AU$67m fine (US$43.1m) given to the property last June for AML and counter-terrorism financing failures.
Good to know: SkyCity recently entered into a seven-year deal with Light & Wonder
On the updated guidance, SkyCity CEO Jason Walbridge said: “The difficult market conditions that businesses like ours — which are reliant on discretionary consumer spending — are experiencing continue to have a significant impact on both our revenue and earnings.
“We continue to be pleased with the levels of visitation we are seeing across our precincts and are adjusting our underlying cost base where appropriate, in response to the lower revenue levels we are currently experiencing.
Notwithstanding these challenging conditions, we remain optimistic that as consumer confidence returns and spend begins to lift, SkyCity is well placed to maximise the opportunities in front of us.”
