SkyCity prepares for consequences of South Australia probes
SkyCity says it’s prepared for the possibility of a heavy fine after the independent review of Adelaide’s SkyCity casino is published.
Australia.- Newly appointed SkyCity Casino Adelaide chairman Glenn Davis has informed shareholders that the gaming operator is preparing for serious consequences for regulatory breaches. The casino operator is facing two probes related to its operations in Adelaide, South Australia, and is reportedly depositing large sums of cash to be able to cover potential fines.
SkyCity said it will continue to work with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and South Australia’s Liquor and Gambling regulator, which are investigating its operations. The investigations follow public inquiries into first Crown Resorts and most recently the Star Entertainment Group in other states.
SkyCity posts revenue of US$395m for FY22
SkyCity Entertainment Group‘s financial results for the fiscal year 2022 showed 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.
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.
