SkyCity posts revenue of US$395m for FY22

SkyCity’s results were impacted by the  Covid-19 pandemic.
SkyCity’s results were impacted by the Covid-19 pandemic.

SkyCity has reported a 33 per cent year-on-year decline in revenue, mainly due to the Covid-19 pandemic.

New Zealand.- SkyCity Entertainment Group has shared its financial results for the fiscal year 2022 with performance impacted by the Covid-19 pandemic. The company posted a decline in revenue of 33 per cent year-on-year from NZ$952.0m to NZ$639m (US$395m) and a NZ$33.6m (US$20.9m) loss for the year ended June 30.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) was NZ$96.9m, down 69 per cent from the prior-year period.

In response to the Omicron variant, SkyCity Auckland was closed for 107 days, SkyCity Hamilton for 65 days, SkyCity Queenstown 22 days, and SkyCity Adelaide eight days. The properties initially operated with significant operational constraints, including reduced staff and reduced operating hours.

Auckland brought in the most revenue at NZ$330.6m, followed by Hamilton and Queenstown with NZ$56.2m and NZ$10.2m, respectively. SkyCity Online Casino reported revenue of NZ$16.9m. The figure was up 29 per cent year-on-year. EBITDA was up 42 per cent against the prior comparable period, despite operational constraints and increased competition. 

According to the company, SkyCity Online Casino benefited from the closure of land-based casinos during the period and had a resilient performance following the reopening of land-based casinos in December 2021.

Julian Cook, chair of the SkyCity board, and Michael Ahearne, chief executive officer of the company, stated: “Our key focuses throughout the year have been to keep our people and guests safe, to preserve employment, to meet the expectations of our regulators, and to enhance our governance framework. 

“Despite the ongoing disruption and volatility, SkyCity maintained a solid financial position over the period, delivered credible operating performance when open, and protected the health and wellbeing of our people. 

“Critically, the Board and management continued to recognise the importance of protecting our casino licences and enhancing our social licence to operate, with a particular focus on uplifting our anti-money laundering (AML) and host responsibility programmes.”

The company said it continued to cooperate with the Australian Transaction Reports and Analysis Centre (AUSTRAC) investigation into potential serious non-compliance by SkyCity Adelaide.

The casino operator said: “That engagement has included the provision of information and documents required by AUSTRAC. At this stage, the timetable for completion of the AUSTRAC investigation into SkyCity Adelaide remains unclear.”

As regards South Australia’s Liquor and Gambling regulator‘s review of Adelaide’s SkyCity casino, the company said it is looking forward to the completion of the review and findings, which are due to be reported to the South Australian Liquor and Gambling Commissioner by 1 February 2023.

Cook and Ahearne said SkyCity’s tourism-related businesses continue to recover and are benefiting from positive domestic visitation, particularly during weekend and holiday periods. 

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