New Zealand’s SKYCITY Entertainment Group booked a slight 0.8% increase in revenue to NZ$822.3 million in the 12 months ended 30 June 2019, but Adjusted EBITDA and profit after tax declined due to a low win rate and the sale of SKYCITY Darwin in April.
The company reported Adjusted EBITDA of NZ$297.8 million, down 3.9%, and net profit after tax of NZ$144.6 million, down 14.7%, although on a normalised basis Adjusted EBITDA increased 1.3% and net profit after tax by 1.9%.
Flagship property SKYCITY Auckland led the way in FY19, with revenue up 3.8% to NZ$606.7 million. Conversely, its Adelaide asset suffered a 0.2% decline to NZ$148.7 million as it continues to undergo a AU$330 million redevelopment.
Notably, given recent reporting by Australian media outlets on the VIP activities of SKYCITY’s local rivals Crown Resorts and Star Entertainment Group, VIP turnover increased 18.9% to NZ$14.1 billion of which SKYCITY Auckland contributed NZ$11.3 billion – a 36.2% increase over FY18 numbers. However, bad luck worked against the company with VIP revenue plummeting 39.8% to NZ$42.3 million. On a normalized basis, VIP revenue would have reached NZ$190 million.
It’s been a busy year for SKYCITY, which not only sold SKYCITY Darwin to Delaware North but also offloaded the majority of its Auckland car parking facilities. Conversely, the company said it remains on track to complete upgrades to its Auckland and Adelaide properties in 2020.
SKYCITY also announced last week the launch of a Malta-based online casino, SkyCityCasino.com, in partnership with Gaming Innovation Group Inc (GiG) – believed to be a strategy aimed at forcing the New Zealand government’s hand regarding online gaming regulation.
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