SkyCity Entertainment Group announced a year-on-year decline in EBITDA by 22.3% for FY26, which was caused by decline in casino revenues and increasing operating costs.
EBITDA fell to NZ$181.6 million ($107.7 million) for the year ended June 30, while underlying revenues have declined by 0.3% to NZ$822.7 million ($487.9 million). Group revenues from gaming have declined by 5.9% during the year.
According to SkyCity, the decline in revenues was a result of introduction of carded gaming, lower activity in premium gaming, as well as a decline in customer visits and spends in the fourth quarter.
However, revenues from non-gaming activities increased by 13.4%, driven by the opening of the New Zealand International Convention Centre (NZICC) in February and an increase in hotel occupancy and food and beverage revenues. Operating expenses increased by 8.4% as a result of NZICC related costs, investments into online gaming, increases labour costs, as well as increases in technology and compliance expenditure.
As a result, net profit of the company have declined by 37.6% to NZ$18.2 million ($10.8 million), while underlying net profit of the company fell by 46.9% to NZ$38 million ($22.5 million). Company has not issued FY27 financial guidance, but is targeting NZ$30 million ($17.8 million) in cost savings during the year. It is also continuing preparations to enter New Zealand’s regulated online casino market. SkyCity will therefore begin FY27 focused on reducing costs, addressing weaker casino performance and preparing for potential growth in online gaming.