SkyCity Entertainment Group has reported a significant decline in profitability for the financial year ended 30 June 2026, with the New Zealand casino operator citing weaker customer spending, the rollout of mandatory carded play and higher operating costs as key factors affecting performance.
The company recorded group revenue of NZ878.9m(US522 million), representing a 6.5% year-on-year increase. However, earnings and profit declined during the period. EBITDA fell 44.2% to NZ120.5million(US71.5 million), while net profit after tax dropped 37.6% to NZ18.2million(US10.8 million).
SkyCity said the results reflected pressure across its core casino operations alongside additional expenses connected with new developments and regulatory requirements.
Chief Executive Officer Jason Walbridge said the company had made progress on several major initiatives during FY26 while dealing with a difficult operating environment, particularly toward the end of the year.
“In FY26, we implemented carded play across our New Zealand casinos, opened the NZICC, advanced our asset monetisation, exceeded our cost-out targets, continued preparing for the regulated New Zealand online gambling market, and settled in principle the outstanding major regulatory issues in Adelaide.”
Walbridge added that the company’s underlying results matched the guidance provided in May, which had already taken into account weaker consumer discretionary spending during the final quarter.
Carded Play and Lower Visitation Affect Casino Revenue
Gaming revenue across the group declined 5.9% during FY26. SkyCity attributed the decrease to the introduction of carded play at its New Zealand casinos, weaker premium play activity and reduced visitation levels.
As published in the official release (pdf), the company estimated that carded play had a negative EBITDA impact of between NZ20millionandNZ30 million (US11.9milliontoUS17.8 million).
SkyCity Auckland experienced the largest pressure among its New Zealand properties. Gaming revenue at the venue declined 11.3% to NZ317.2million(US188 million), while visitation dropped from 2 million customers in the previous financial year to 1.7 million.
The Auckland property recorded an increase in non-gaming revenue, which rose 16% to NZ181.4million(US107.6 million), supported by hotel, food and beverage operations and other activities.
The company’s two smaller New Zealand casinos in Hamilton and Queenstown reported a slight decline in revenue to NZ73.9million(US43.9 million). Gaming revenue at those properties decreased 0.4% to NZ63.9million(US37.9 million).
NZICC Opening Adds Revenue While Costs Increase
SkyCity highlighted the opening of the New Zealand International Convention Centre (NZICC) as a major development during the year. The venue opened on 11 February and hosted 141 events, attracting approximately 100,000 visits before the end of FY26.
The company expects the NZICC event pipeline to generate around 350,000 visits during FY27.
The convention centre contributed to higher non-gaming revenue, which increased 13.4% across the group. However, operating costs also rose by 8.4% due to NZICC operations, investment in online gambling preparations, increased labour expenses, technology spending and compliance-related costs.
SkyCity also continued work ahead of New Zealand’s planned regulated online gambling market. The company said investment in this area contributed to higher expenses during the year.
In Adelaide, the company reported revenue of AU212.1million(US151 million), broadly unchanged from the previous year. Gaming revenue declined 1.8% to AU143million(US102 million), while underlying EBITDA fell 31.5% to AU19.5million(US13.9 million).
SkyCity recorded a AU43million(US30.6 million) write-down related to the Adelaide property and plans to begin a strategic review during the first half of FY27.
Cost Reduction Plans Continue Into FY27
SkyCity said it exceeded its cost reduction targets during FY26 and will continue efforts through its Building a Better Business Programme.
The company expects annualised savings of NZ30million(US17.8 million) during FY27, increasing to total benefits of NZ70million(US41.5 million) in FY28.
Walbridge said the business was adapting to changing market conditions while focusing on operational improvements.
“We are becoming a simpler, smarter, and more connected business, actioning further savings to deliver annualized benefits of NZ30million(US17.8 million) in FY27 and growing to total benefits of NZ70m(US41.5 million) in FY28. This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling.”
SkyCity also confirmed progress on resolving regulatory matters connected with its Adelaide casino operations. The company previously agreed to pay AU21million(US15 million) and implement leadership and governance changes under an agreement with South Australia’s Liquor and Gambling Commissioner.
The operator did not provide FY27 financial guidance due to continued macroeconomic uncertainty.