SkyCity Entertainment Group’s underlying EBITDA fell 22.3% to NZ$181.6 million ($107.7 million) in fiscal 2026, while reported EBITDA dropped 44.2% to NZ$120.5 million ($71.5 million), as weaker gaming revenue and higher costs offset growth in its non-gaming businesses.
Reported net profit after tax fell 37.6% to NZ$18.2 million ($10.8 million), while underlying net profit declined 46.9% to NZ$38 million ($22.5 million) for the year ended June 30.
Group gaming revenue declined 5.9%, hurt by the rollout of mandatory carded play across SkyCity’s New Zealand casinos, weaker premium play and lower visitation and spending in the fourth quarter.
SkyCity estimated the introduction of carded play had a NZ$20 million to NZ$30 million ($11.9 million to $17.8 million) negative impact on EBITDA.
Non-gaming revenue rose 13.4%, supported by the opening of the New Zealand International Convention Centre (NZICC) in February and growth in hotel and food and beverage operations.
Operating expenses increased 8.4%, reflecting costs associated with the NZICC, investment in online gaming ahead of New Zealand’s regulated market, higher labour expenses and increased technology and compliance spending.
Chief Executive Jason Walbridge said the company had implemented carded play across its New Zealand casinos, opened the NZICC and continued preparations for the regulated online gambling market.
“Our underlying results met the guidance given in May, which recognized that consumer discretionary spending was weaker in the last quarter of the year,” Walbridge said.
SkyCity Auckland’s gaming revenue fell 11.3% to NZ$317.2 million ($188.1 million), while visitation declined to 1.7 million from 2 million a year earlier.
The decline was partly offset by a 16% increase in non-gaming revenue to NZ$181.4 million ($107.6 million).
Underlying EBITDA at the Auckland property fell 14.2% to NZ$179.8 million ($106.6 million).
The NZICC hosted 141 events and about 100,000 visits between its Feb. 11 opening and the end of the financial year. SkyCity expects its pipeline of events to generate about 350,000 visits in fiscal 2027.
SkyCity Adelaide’s underlying EBITDA declined 31.5% to A$19.5 million ($13.9 million), despite broadly stable revenue. Gaming revenue fell 1.8% to A$143 million ($102 million), while total revenue was A$212.1 million ($151 million).
The company recorded a A$43 million ($30.6 million) write-down on the Adelaide property and plans to begin a strategic review during the first half of fiscal 2027.
The Adelaide business is also undergoing the Building a Better Business Programme, a remediation and transformation initiative. SkyCity recently agreed to pay A$21 million ($15 million) and overhaul leadership systems at the property under an agreement with South Australia’s Liquor and Gambling Commissioner to resolve outstanding regulatory matters.
SkyCity did not provide fiscal 2027 guidance, citing macroeconomic uncertainty, but is targeting NZ$30 million ($17.8 million) in annualized cost savings during the year, rising to NZ$70 million ($41.5 million) in fiscal 2028.
“We are becoming a simpler, smarter, and more connected business, actioning further savings to deliver annualized benefits of NZ$30 million in FY27 and growing to total benefits of NZ$70 million in FY28,” Walbridge said.
“This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling.”