SkyCity has reported that revenue rose 44.9 per cent year-on-year.
New Zealand.- SkyCity Entertainment Group has shared its financial results for the fiscal year 2023. The company posted revenue of NZ$926.2m (US$551m), up 44.9 per cent year-on-year from NZ$639m (US$395m).
Earnings before interest, tax, depreciation, and amortisation (EBITDA) was NZ$165.9m, up 71.7 per cent from the prior year. The company posted a net profit after tax of NZ$8m (US$4.8m).
SkyCity attributed the recovery in revenue to the performance of its New Zealand operations amid a high inflation environment. It said: “This is a result of robust growth in electronic gaming machine revenues and a real rebound in non-gaming revenues as people have returned to our precincts.”
However, the company noted that EBITDA and net profit were impacted by the recognition of a provision related to AUSTRAC proceedings against SkyCity Adelaide of AU$45m (US$28.9m), and an impairment of the Adelaide Casino licence of AU$45.6m (US$29.3m).
SkyCity Adelaide’s normalised EBITDA of NZ$34.9m was up 70 per cent. An increase in gaming machine and non-gaming revenues was offset by higher operating costs, including AU$8m of legal and compliance expenses.
SkyCity Online Casino EBITDA was NZ$10.7m, down 17 per cent year-on-year. The increase in gross gaming revenue was offset by higher bonusing and jackpots and increased operating costs.
Chief executive officer Michael Ahearne said, “We are pleased to have a full year of no interruptions which has meant SkyCity has rebounded strongly. It is a real credit to our entire team who have responded fantastically to the challenges and the complexities of the last few years to deliver a year where we are now ahead of pre-Covid-19 levels.”
He added: “SkyCity has made continued progress in enhancing its Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) capabilities as well as its Host Responsibility programmes. These enhancements are supported by a dedicated team of more than 80 full-time equivalents (FTEs) operating across the Group and is supported by frontline teams.
“The increased allocation we have made in resources to continuous improvement in our compliance standards underscores SkyCity’s commitment to caring for our customers and our communities and ensuring everyone has a safe experience at SkyCity. We have also recently created the role of chief risk officer, reporting to the CEO, to lead the risk and compliance function.”
As for the future, Ahearne stated: “We are cautiously optimistic about the outlook for the coming year. Our new operating model gives us more flexibility to navigate the year ahead and be agile enough to adapt to changing operating climates. We are excited about the new opportunities in the coming year, in particular the opening of the Horizon Hotel.”