SkyCity Reports Loss After Challenging Year

SkyCity Entertainment Group has recently announced its financial results for the fiscal year ended June 30, 2024. Despite facing a challenging operating environment, the company says it has demonstrated its ability to adapt and maintain a solid footing, laying the groundwork for future growth and success.

The key highlights of SkyCity’s FY24 results include an underlying Group revenue of $959.6 million, a modest increase of 0.3% from the previous year. However, the company’s underlying Group EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined by 8% to $277.8 million.

During the year, SkyCity said it made significant progress in resolving various regulatory matters, including reaching settlements with AUSTRAC in Australia and the Department of Internal Affairs (DIA) in New Zealand regarding historic non-compliance with anti-money laundering and counter-financing of terrorism laws. As part of these agreements, the company temporarily closed its Auckland gaming areas for a five-day period in September 2024.

To address these regulatory challenges and strengthen its compliance capabilities, SkyCity has launched a comprehensive Transformation Programme. This initiative focuses on building robust systems and processes to ensure the company meets its regulatory requirements.

In more positive news the highly anticipated opening of the New Zealand International Convention Centre (NZICC) is on the horizon, which the company believes will be a significant draw for both domestic and international visitors. Additionally, the company is enhancing its internal capabilities in preparation for the regulation of online casino gambling in New Zealand.

The company successfully refinanced selected tranches of debt maturing in 2025 and 2026, including a new issue of US$150 million of USPP notes (7-year tenure) and $217.5 million of extended syndicated bank facility tranches.

Recognizing the importance of customer care and responsible gambling, SkyCity has announced the implementation of 100% carded play across its New Zealand casinos by July 2025 and at the SkyCity Adelaide casino by early 2026. In FY24, the company contributed $10.1 million towards community contributions, levies, and sponsorships, including $4.6 million through the New Zealand Community Trusts, enabling $5.9 million in grants to be distributed to 130 community organizations.