SkyCity revises earnings guidance and suspends dividends

Full-year EBITDA is now expected to be between NZ$280m and NZ$285m (US$176.6m).

New Zealand.- SkyCity Entertainment Group has issued a company filing updating its earnings guidance for the fiscal year 2024. The company now expects underlying group EBITDA of between NZ$280m (US$173.5m) and NZ$285m (US$176.6m) and net profit after tax (NPAT) between NZ$120m (US$74.3m) and NZ$125m (US$78.1m). It also announced the suspension of dividends for the second half.

SkyCity said it revised the financial figures due to a challenging economic environment affecting customer spending, the delayed opening of the Horizon Hotel, now expected in August 2024, and a potential increase in Adelaide casino duty following the South Australian Court of Appeal’s ruling on the interpretation of provisions in the Adelaide Casino Duty Agreement regarding loyalty points.

The company added it expects underlying Group EBITDA for FY25 to be between NZ$250m and NZ$270m. This outlook does not include the impact of any potential temporary suspension of SkyCity’s casino operator’s licence in New Zealand. A private hearing on the matter is scheduled for August.

SkyCity expects to pay the AUSTRAC civil penalty of AU$67m (US$44.5m) penalty in July 2024 (subject to Federal Court approval tomorrow (June 7) and has committed NZ$76m (US$47.1m) capex to complete the New Zealand International Convention Center (NICC). The company plans to release full-year results on August 22.