Casino operator SkyCity Entertainment Group has reaffirmed its full-year earnings guidance but anticipates that “subdued” consumer discretionary spending will negatively impact performance into 2025.
SkyCity maintains its FY25 earnings forecast, projecting an underlying group EBITDA between NZ$245 million ($146 million) and NZ$265 million ($158 million).
According to an announcement released after the annual general meeting on Thursday, the company indicates that the economic environment continues to be challenging, with cuts to interest rates potentially providing some relief. Tough conditions are expected to continue into next year, as any improving outlook is not anticipated until the second half of 2025.
CEO Jason Walbridge notes that there are ongoing regulatory matters in Adelaide, including Brian Martin KC’s independent review due by year-end. The company is working with consultancy firm Kroll to deliver improvement programs in anti-money laundering (AML) and counter-terrorism financing (CFT) and host responsibility
Additionally, the company is preparing to implement 100 percent carded play. SkyCity estimates that this shift could initially impact annual uncarded gaming revenue by 12 percent to 15 percent.
In August, the company announced it expects an impairment of its Adelaide assets by AU$86.2 million ($57.5 million) due to the mandatory carded play set to begin at its SkyCity Adelaide casino in 2026, along with increased legal and compliance costs related to uplift programs.
This initiative will require all customers to play with a unique identifier, linking all electronic gaming bets to their identities, thereby enhancing accountability in gaming operations.
SkyCity reported a financial loss of NZ$143.2 million ($88.23 million) for the year ending June 30th, attributed to a challenging operating environment that led to reduced revenue.
Although overall group revenue increased by 0.3 percent to NZ$928.5 million ($572 million), EBITDA declined by 16.7 percent year-over-year, reaching NZ$138.2 million ($85.15 million), partly due to the impact of significant accounting adjustments.
