New Zealand and Australian gaming operator SkyCity Entertainment Group has announced that it’s expecting its normalized EBITDA for the fiscal 2024 year to be effectively flat, reaching between NZ$290 million ($178.65 million) and NZ$310 million ($190.97 million).
The figure is in line with the NZ$310 million in normalized EBITDA for its fiscal 2023 but reverses previous guidance from the group that it could see ‘a modest year-on-year increase’ in fiscal 2024.
The group notes that its update financial estimates do ‘not reflect the impact of any potential temporary suspension’ of the group’s casino operator license in New Zealand.
The group notes the possible suspension ‘is currently being considered by the Gambling Commission following an application made by the Department of Internal Affairs’.
The suspension would apply for a period of 10 days and relates to alleged breaches of gambling harm minimization rules.
SkyCity is also facing probes over its suitability to hold a gaming license in Adelaide, Australia. Within New Zealand the group operates casinos in Auckland, Hamilton and Queenstown.
Regarding the reasons behind its lowered earnings estimates, the group notes there has been a drop in EGM revenue across its New Zealand sites, ‘weaker than expected performance in the Adelaide property’ due to ‘continued legal and compliance cost pressure’, as well as the recently mentioned delay in the settlement over its Auckland Car Park Concession, as well as ‘accelerated investment in the Group’s New Zealand online gaming operations ahead of the potential regulation of the online gaming market in New Zealand’.
