SkyCity Entertainment Group has lowered its full-year 2026 earnings guidance, citing ongoing macroeconomic pressures, weaker consumer spending, and rising costs impacting operations across New Zealand and Australia, according to a market update released on May 1st.
The casino operator now expects underlying EBITDA for FY26 to range between NZ$180 million and NZ$190 million ($106 million to $112 million), down from its previous guidance of NZ$190 million to NZ$210 million.
Reported EBITDA is also forecast to decline to between NZ$155 million and NZ$165 million ($91 million to $97 million), compared with an earlier range of NZ$170.6 million to NZ$190.6 million.
SkyCity said trading and visitation have been affected since March 2026, particularly due to rising fuel prices, with the most pronounced impacts seen at its Auckland and Adelaide properties. The company noted that conditions have created uncertainty for the remainder of the fiscal year, with consumer discretionary spending under pressure.
“Significant uncertainty exists on the breadth and duration of prevailing macroeconomic conditions,” the company said, adding that further deterioration could affect its outlook.
In response, SkyCity has implemented cost-saving measures and exceeded its previously announced NZ$10 million savings target for FY26. Additional initiatives are now being introduced across operations and corporate functions, with support from external advisors.
The revised guidance also reflects slightly higher costs related to timing movements and foreign exchange impacts.
Separately, the company provided an update on its asset monetization program, confirming it has entered into a non-binding agreement for the potential sale of the 99 Albert Street office building and investment properties on Victoria Street. It is also seeking investor interest in The Grand Hotel.
SkyCity added that New Zealand’s Online Casino Gambling Act 2026 took effect on May 1st, with licenses expected to be issued from early 2027.
