SkyCity expects strong performance for FY21
SkyCity expects a normalised EBITDA of between $247-253m for the financial year ending June 30 thanks to a rise in domestic tourism.
New Zealand.- SkyCity Entertainment Group has announced prior to the release of its FY21 results that it has seen a strong performance from its gaming businesses in New Zealand.
The company said it had seen particularly strong performance from electronic gaming machines at SkyCity Adelaide and from its offshore online casino SkyCity Malta.
SkyCity will release its FY2021 result on 25 August 2021. It expects normalised net operating profit after tax (NPAT) of between AU$84m and AU$88m and normalised EBITDA of between AU$247m and AU$253m.
SkyCity Adelaide reopened its doors after a six-day lockdown last November with restrictions in place, including entry limited to certain membership tiers, a maximum capacity of 100 including staff on the gaming floor and fewer spaces at gaming tables.
Although the company continues to struggle with the lack of foreign tourists due to Covid-19 countermeasures, SkyCity has benefitted from domestic tourism, particularly on the weekend and holidays.
Criticism of SkyCity profit return to community
Richard Briggs, Hamilton City Council chief executive, has delivered a draft submission to the New Zealand Gambling Commission calling for an increase in the amount of profit SkyCity Hamilton returns to the local community.
The casino operator only returns 1.5 per cent while pubs and clubs must return 40 per cent of their slot machines profits.
A few weeks ago, the New Zealand Gambling Commission started analysing casino charity requirements.
For Briggs, the current licence conditions are “out of sync” due to a historic situation. He said there should be a standard profit return with a minimum contribution.
SkyCity Queenstown Casino donates nearly 2.5 per cent of its net profit, SkyCity Hamilton 2 per cent of its revenue and Auckland’s SkyCity casino just 0.7 per cent of its earnings, or a minimum of NZ$500,000.
