SkyCity lays off 200 people, sees smaller business after lockdown

SkyCity Entertainment Group issued a public statement on Friday morning announcing it was laying off 200 of its New Zealand employees immediately, and making clear that it foresaw serious long-term consequences from the current Covid-19 crisis, including a future as “a smaller, domestically focused business.”

SkyCity announced a raft of measures to reduce costs, including sharp reductions in senior executive pay, the suspension of all capital development projects save the NZICC and Horizon Hotel project, and the layoff of Chief Property Officer Peter Alexander, whose position was made redundant by a management restructure.

Nevertheless, the firm also concluded that 200 immediate New Zealand staff layoffs were also necessary. Decisions about Australian staff are still pending.

Most striking, however, were sections of the statement itself, which made clear that SkyCity’s executives saw the current crisis as much more than a temporary obstacle to be overcome.

“This is a storm we could, and would, weather if we were to reopen within a few months in
a pre Covid-19 world. Unfortunately, the impact of Covid-19 is not limited to the short term consequences of closure. Even when we fully open, we reasonably expect that weaker
economies, lower personal disposable income and changed entertainment habits, as well
as longer term travel restrictions, will result in us recommencing as a smaller, domestically
focused business. Our International Business activities might recover reasonably quickly
once travel restrictions are lifted, but the parts of our business driven by corporate travel
and by tourism, such as our hotels and the Sky Tower, will take longer to recover,” they said.

SHARE
Previous articleParadise Co. sees 60 percent drop in March casino revenues
Next articleAsia Gaming Brief launches AGB Webinar Series

Related Articles

SkyCity cuts forecasts as fire, Coronavirus hit

SkyCity Entertainment, New Zealand’s only listed gaming company, has cut forecasts for the year and says the near-term outlook is gloomy, as it grapples with the aftermath of a fire in a key project and now the impact of the Coronavirus. The operator, which has properties in both New Zealand and Australia, hit the headlines […]

SkyCity outlines Auckland enhancement projects

SkyCity Entertainment has outlined upgrades to its Auckland entertainment complex to draw in domestic visitors in the absence of international tourists.

SkyCity doesn’t expect normality until 2022

SkyCity Entertainment Group says it doesn't expect to be back to full strength until 2022 and has prepared the business for the eventuality of further Covid-19 lockdowns.
Jacinda Ardern

Greens seen as gambling wild card in NZ elections

New Zealand’s main political parties are unlikely to change the gambling landscape post general elections that end on Saturday, although the picture may be different if the hard left Green Party becomes part of the government.
SkyCity Hamilton

Covid-19 restrictions dropped for SkyCity properties outside Auckland

SkyCity Entertainment has announced that, except for Auckland, Covid-19 restrictions will no longer be necessary at its New Zealand properties. This means that the firm’s Hamilton and Queenstown facilities can now operate once again without physical distancing measures and that the general public can return to the casinos. SkyCity Auckland, however, will continue to operate […]

SkyCity revenues rise and profits fall in FY2020

The SkyCity Entertainment Group announced its full year results on Thursday morning for the July 2019 to June 2020 period, showing revenues rising but profits falling in relation to the previous year. As for the revenues, they were up about 37 percent to over NZ$1.1 billion (US$765 million). More than 44 percent of these revenues […]

SkyCity raises FY20 earnings guidance

SkyCity Entertainment has raised its guidance for earnings for the 2020 fiscal year due to higher estimates from insurance proceeds for fire damage at the New Zealand International Convention Centre last year.

Inside SkyCity gives glimpse of Covid responses

In a video presentation hosted by SkyCity Auckland Executive General Manager of Gaming Matt Ballesty and presented at the Australasian Gaming Expo, a glimpse was provided on how the New Zealand-based gaming company coped with Covid-19. As was explained in the video, New Zealand had a full lockdown lasting for about four weeks, followed by […]
Skycity New Zealand

Auckland back in lockdown after new cases

Auckland has been put back into stage three lockdown, while the rest of the country moves back to stage two, after new Covid-19 cases were discovered in a local household with no obvious cause of transmission.

SkyCity gets $9.4m in further wage subsidies

New Zealand’s SkyCity Entertainment Group has received a further $9.4 million (US$6.2 million) in wage subsidies to support employment during Covid-19, taking its total to $31 million, according to a local media report.