SkyCity reports FY25 earnings and unveils NZ$240m equity raise
Lower revenue, regulatory upgrades and subdued economy prompt fresh capital strategy.
Key points:
– FY25 underlying revenue down 5% to NZ$825.2m (US$493.5m)
– NZ$240m equity raising announced to strengthen balance sheet
– NZICC on track for February 2026 opening; online casino launch expected in FY27
SkyCity Entertainment Group has released its FY25 financial results, reporting a 5% decline in underlying revenue to NZ$825.2m amid a backdrop of lower discretionary spending and evolving regulatory requirements. Despite a stable flow of visitors across its sites, average spend per customer was reduced and international business volumes remained subdued.
Underlying EBITDA fell 15.9% to NZ$233.7m, while reported EBITDA rose to NZ$216.1m due to one-off accounting adjustments. Net profit after tax recovered to NZ$29.2m, rebounding from a NZ$143.3m loss last year caused by regulatory provisions in Adelaide.
As part of its strategy to support balance sheet strength and long-term growth, SkyCity has announced a NZ$240m equity raising. This includes an NZ$81m institutional placement and a NZ$159m pro-rata entitlement offer. Shares will be priced at NZ$0.70, a 30% discount to the last traded price. Proceeds will fund investment in regulated online gaming, NZICC pre-opening costs, and help bring net debt to EBITDA below 2.0x by FY27. The company confirmed no dividend for FY25 and does not expect to declare one in FY26.
FY26 EBITDA is projected between NZ$190–210m, with anticipated headwinds from continued economic pressure, the introduction of Carded Play across all New Zealand venues, and upfront investments in digital and convention assets.
While Carded Play is expected to reduce FY26 EBITDA by NZ$20–30m, it underpins long-term harm minimisation efforts and enhances customer data insights. Meanwhile, Horizon by SkyCity completed its first full year of operations with a positive performance despite a competitive hotel market.
Good to know: The South Australian regulator’s independent review concluded SkyCity Adelaide remains suitable to operate, though final enforcement outcomes are pending
SkyCity also confirmed the NZ International Convention Centre remains on track for a February 2026 opening. With an estimated 500,000 additional precinct visits annually, it is expected to uplift group revenue and accelerate spend recovery. Regulated online casino operations are anticipated to launch in FY27.
Asset sales, including 99 Albert Street and the Auckland car park concession, are targeted to release NZ$200m over the next 12 to 18 months.
CEO Jason Walbridge stated the company’s capital strategy positions it to navigate short-term headwinds while preparing for future opportunities in both physical and digital markets.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
