SkyCity Entertainment’s earnings are likely to make a solid recovery in the fiscal 2021 year, ending in June, to at least 75 percent of 2019 levels, Standard & Poor’s said in a note.
In terms of EBITDA, fiscal 2021 is likely to exceed 2019 levels, it said. The firm sees near normal earnings in fiscal 2022.
“This recovery will be supported by strong gaming revenue and a recovery in non-gaming revenue, primarily at the group’s Auckland and Adelaide assets,” the not said. “Management continues to target a 2.5 x net debt-to-EBITDA ratio as part of the company’s capital allocation framework and commitment to an investment grade rating.”