SkyCity Underlying EBITDA Falls 22.3% to NZ$181.6 Million on Gaming Revenue Pressure

SkyCity Entertainment Group reported underlying EBITDA of NZ$181.6 million ($107.7 million) for fiscal 2026, a decline of 22.3%. Reported EBITDA fell 44.2% to NZ$120.5 million ($71.5 million). Both net profit metrics dropped sharply, with reported profit after tax down 37.6% to NZ$18.2 million ($10.8 million).

Group gaming revenue declined 5.9%. Mandatory carded play across New Zealand casinos, weaker premium play, and lower fourth-quarter visitation and spending drove the result. SkyCity estimated the carded play rollout delivered a NZ$20 million to NZ$30 million ($11.9 million to $17.8 million) negative EBITDA impact. Operating expenses rose 8.4% from costs tied to the new convention centre, online gaming preparations, labour, technology, and compliance.

Auckland Property and NZICC Contribution

SkyCity Auckland gaming revenue decreased 11.3% to NZ$317.2 million ($188.1 million). Visitation fell to 1.7 million from 2 million the prior year. Non-gaming revenue increased 16% to NZ$181.4 million ($107.6 million). The Auckland property’s underlying EBITDA declined 14.2% to NZ$179.8 million ($106.6 million).

The New Zealand International Convention Centre opened February 11 and hosted 141 events with about 100,000 visits through June 30. SkyCity expects the event pipeline to produce roughly 350,000 visits in fiscal 2027. Non-gaming revenue for the group rose 13.4%, supported by the centre along with hotel and food-and-beverage growth.

Adelaide Write-Down and Cost Savings Target

SkyCity Adelaide underlying EBITDA declined 31.5% to A$19.5 million ($13.9 million) on broadly stable revenue. Gaming revenue fell 1.8% to A$143 million ($102 million). The company recorded an A$43 million ($30.6 million) write-down on the property and plans a strategic review in the first half of fiscal 2027. It also agreed to pay A$21 million ($15 million) and overhaul leadership systems to resolve matters with South Australia’s Liquor and Gambling Commissioner.

Chief Executive Jason Walbridge said the underlying results met guidance issued in May that factored in weaker consumer discretionary spending in the final quarter. The company withheld fiscal 2027 guidance citing macroeconomic uncertainty. It targets NZ$30 million ($17.8 million) in annualized cost savings during fiscal 2027, rising to NZ$70 million ($41.5 million) in fiscal 2028.

“This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling,” Walbridge said. The savings form part of a broader effort to become a simpler operator amid regulatory change and cost pressure.

Reporting: Yogonet International

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