New Zealand and Australia gaming operator SKyCity has revised down its expected FY25 group EBITDA by 4 percent, as ‘spend per visit across the Group has continued to fall’.
According to new earnings guidance released on Tuesday, SkyCity indicated that ‘market conditions have continued to deteriorate, causing it to expect a 4 percent reduction from the previous estimate of NZ$225-245 million ($134-146 million).
The group highlights that its Auckland property saw ‘reduced spend across both its hospitality and gaming businesses’, while noting that its Hamilton and Queenstown casinos ‘have continued to perform broadly in line with group expectations’.
Looking at its Australian property in Adelaide, the group notes that increases to its AML and harm minimization programs caused ‘both lower visitation and lower spend by VIP gaming customers’.
This comes ‘despite overall EGM gaming turnover in South Australia growing year-over-year’.
Speaking of the new guidance, SkyCity CEO Jason Walbridge noted that “The difficult market conditions that businesses like ours – which are reliant on discretionary consumer spending – are experiencing continue to have a significant impact on both our revenue and earnings”.
SkyCity saw a stark drop in net profit for 2H24 due to lower visitor spend, but is hoping that the opening of the New Zealand International Convention Center (NZICC) in February of 2026, will help boost income.
