New Zealand’s SkyCity Entertainment Group slumped to a NZ$33.7 million (US$22.4 million) loss in the six months to 31 December 2021, representing a 143.3% decline from a profit of NZ$78.4 million (US$56.4 million) over the same period in 2020.
The decline comes after SkyCity’s flagship casino, SkyCity Auckland, was closed for a total of 107 days during the reporting period as a result of COVID-19 restrictions. Both SkyCity Hamilton and SkyCity Queenstown were also closed at various times.
As a result, revenue fell 35.6% to NZ$289.8 million (US$192.5 million) and Adjusted EBITDA by 86.4% to NZ$20.4 million (US$13.5 million). By property, SkyCity Auckland suffered the largest decline with revenue down 48.7% year-on-year to NZ$118.5 million (US$78.7 million), although the company’s Australian casino, SkyCity Adelaide, enjoyed a 3.7% improvement to NZ$92.8 million (US$61.6 million).
Revenue from the company’s online gaming segment also increased 16.3% to NZ$9.4 million (US$6.2 million).
“COVID-19 has continued to extensively impact the business and operations at each of SkyCity’s properties in the first half of the financial year,” said CEO Michael Ahearne.
“Government mandated lockdowns resulted in the closure of SkyCity Auckland for 107 days, SkyCity Hamilton for 65 days, SkyCity Queenstown for 22 days and SkyCity Adelaide for 8 days. When permitted to reopen, the properties have operated under significant constraints due to restrictions on mass gatherings and physical distancing requirements and I’m extremely proud of how the SkyCity team has adapted to those challenges.
“What we have observed is that our New Zealand domestic gaming business demonstrates resilience and is quick to rebound when operating without restrictions.
“SkyCity Adelaide operated with significant capacity limits, CBD disruptions and workforce disruptions due to COVID-19. Performance is expected to improve as restrictions are relaxed, interstate borders progressively open and international tourists are welcomed back to Australia.
“Turning to the outlook for FY22, we will continue to focus on navigating through the ongoing uncertainty and near-term challenges presented by COVID-19 while ensuring financial resilience through ongoing cost and capital control and effective cash management.”
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