SkyCity lowers forecast for 2024

SkyCity lowers forecast for 2024

The gaming company has downgraded its full-year profit forecast.

New Zealand.- SkyCity Entertainment Group Limited expects its full-year operating earnings to be below or flat on last year. The company forecast normalised earnings before tax (EBITDA) for the year ended June of between NZ$290m (US$$178.6m) and NZ$310m (US$190.9m), compared with last year’s NZ$310m and its October update of a “modest year-on-year increase.”

It noted weaker-than-expected performance in Adelaide based on a lower revenue outlook with continued legal and compliance cost pressure. It has seen a reduction in electronic gaming machine revenue across New Zealand due to cost-of-living pressures and economic uncertainty.

See also: SkyCity CEO Michael Ahearne to step down

The company also cites a delay in settlement of the termination of the Auckland car park concession agreement with MPF Parking NZ (Macquarie), resulting in lower car park earnings; and an accelerated investment in the group’s New Zealand online gaming operations ahead of potential regulation of that market.

It said the forecast did not include an allowance for a possible suspension of its local licence for an alleged breach of responsible gambling rules. SkyCity said it expects group normalised net profit after tax for 2024 of NZ$125m to NZ$135m.

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