New Zealand’s SkyCity Entertainment Group reported a net loss after tax of NZ$143.3 million (US$88.3 million) for the year ended 30 June 2024, heavily impacted by a recently announced AU$86.2 million (US$57.5 million) impairment on its Adelaide assets and a NZ$129.6 million (US$78.4 million) following changes to New Zealand tax legislation.
However, underlying or luck-adjusted results were steady, with underlying group-wide revenue up 0.3% year-on-year to NZ$959.6 million (US$591 million) and underlying EBITDA down 8% to NZ$277.8 million (US$171 million).
Reported revenue grew by 0.3% to NZ$928.5 million (US$572 million) while reported EBITDA fell by 16.7% to NZ$138.2 million (US$85.1 million) with SkyCity citing a “difficult operating environment and the impact of the significant accounting adjustments.”
SkyCity CEO Jason Walbridge said, “The earnings we have announced today are a solid result despite the economic circumstances. I am confident SkyCity is set up to build on our amazing business, with a number of important and exciting milestones coming down the pipeline in the next 12 months.
“SkyCity is coming off a very challenging financial year, with the combination of the soft economy, cost-of-living pressures in both New Zealand and Adelaide, and responding to various regulatory matters.
“While we are continuing to see good visitation numbers across our properties as a whole, the spend per customer has decreased, reflecting the harder economic times everyone is facing. We are continuing to focus on new and innovative experiences so that customers see SkyCity as an attractive entertainment destination that delivers great outcomes.”
SkyCity also noted that the past 12 months saw the company reach a settlement with Australia’s AML watchdog AUSTRAC in Australia and the Department of Internal Affairs (DIA) in New Zealand regarding historic non-compliance of anti-money laundering and counter financing of terrorism laws (with the DIA settlement subject to final approval by the Court), with further impact still to come.
In Australia, an independent review into SkyCity Adelaide has resumed in the wake of a settlement with a report due by December, while in New Zealand SkyCity Auckland will temporarily close its gaming areas for a five-day period in September as part of an agreement reached with the DIA.
“Progressing the various regulatory matters this year has been a positive step forward for us,” explained Walbridge. “That said, there is still more work for us to do as we have not met our own expectations to date. Our uplift programs are our priority, and we now have a significant Transformation Programme underway with a focus on building capability to ensure compliance with our regulatory requirements. Caring for our customers will continue to be at the heart of what we do.
“A key milestone in customer care and experience will begin next year with the introduction of 100% carded play across our New Zealand casinos by July 2025, and at the SkyCity Adelaide casino by early 2026. Once implemented, carded play will be the only way to game at SkyCity. This will help us and our customers monitor their play and identify when breaks are needed.”
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