SkyCity posts revenue of US$276m for H1

The company has reported a yearly drop in both revenue and net profit for the first six months of FY24.
The company has reported a yearly drop in both revenue and net profit for the first six months of FY24.

Group revenue was down 3.7 per cent in year-on-year terms.

New Zealand.- SkyCity Entertainment Group has shared its financial results for the first half of the fiscal year 2024. It posted revenue of NZ$445.2m (US$276m), down 3.7 per cent when compared to the previous year.

Net profit after tax (NPAT) was down 8.5 per cent year-on-year to NZ$66.5m (US$41.23m), while earnings before interest, tax, depreciation, and amortisation (EBITDA) were down 5 per cent year-on-year to NZ$101m (US$62.62m).

Chief executive officer, Michael Ahearne, said “The challenging economic climate impacted our business this half, particularly in domestic Electronic Gaming Machine (EGM) revenues. Pleasingly, our hospitality businesses and table games in Auckland have performed well. However, we also see ongoing cost inflation in addition to our further investment in compliance activities.”

According to the company, visitation across its properties was positive, particularly in Auckland, with 2.5 million people visiting, up 8 per cent in year-on-year terms. The Auckland hotel saw an increase in revenue due to an increase in occupancy rate to 87.5 per cent. The Sky Tower experienced a 31 per cent increase in visitors.

Table games at the venue were open 17 per cent longer than before. However, the company’s earnings from electronic gaming machines were lower than the previous year as customers spent less. 

The Hamilton property saw a drop in revenue across all business segments but the number of visitors increased by 5.2 per cent. Gaming revenue was also down in Queenstown mainly due to lower premium play. SkyCity is applying for the renewal of the Queenstown casino venue licence for another 15 years from December 2025. It plans to exit its Wharf casino venue licence and property lease. 

The SkyCity Adelaide saw a decrease in revenue, although non-gaming revenues increased. The business has implemented cost-cutting measures.

Looking ahead, Ahearne said: “We have a lot to look forward to over the next year. Horizon by SkyCity, our new 5-star hotel in Auckland, is planned to open in April 2024. Along with the opening of Horizon by SkyCity, we will also see the return of The Grill restaurant a favourite of both Kiwis and visitors alike.

“We look forward to the New Zealand International Convention Centre being open and operational in 2025. The international and local demand for conference bookings continues.”

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SkyCity Entertainment Group