SkyCity Entertainment Group has reported a major decline in profitability for the monetary yr ended 30 June 2026, with the New Zealand on line casino operator citing weaker buyer spending, the rollout of necessary carded play and better working prices as key elements affecting efficiency.
The firm recorded group income of NZ878.9m(US522 million), representing a 6.5% year-on-year improve. However, earnings and revenue declined in the course of the interval. EBITDA fell 44.2% to NZ120.5million(US71.5 million), whereas internet revenue after tax dropped 37.6% to NZ18.2million(US10.8 million).
SkyCity mentioned the outcomes mirrored strain throughout its core on line casino operations alongside extra bills related with new developments and regulatory necessities.
Chief Executive Officer Jason Walbridge mentioned the corporate had made progress on a number of main initiatives throughout FY26 whereas coping with a tough working surroundings, notably towards the top of the yr.
“In FY26, we implemented carded play across our New Zealand casinos, opened the NZICC, advanced our asset monetisation, exceeded our cost-out targets, continued preparing for the regulated New Zealand online gambling market, and settled in principle the outstanding major regulatory issues in Adelaide.”
Walbridge added that the corporate’s underlying outcomes matched the steerage supplied in May, which had already taken into consideration weaker shopper discretionary spending in the course of the last quarter.
Carded Play and Lower Visitation Affect Casino Revenue
Gaming income throughout the group declined 5.9% throughout FY26. SkyCity attributed the lower to the introduction of carded play at its New Zealand casinos, weaker premium play exercise and diminished visitation ranges.
As revealed within the official launch (pdf), the corporate estimated that carded play had a unfavourable EBITDA influence of between NZ20millionandNZ30 million (US11.9milliontoUS17.8 million).
SkyCity Auckland skilled the most important strain amongst its New Zealand properties. Gaming income on the venue declined 11.3% to NZ317.2million(US188 million), whereas visitation dropped from 2 million clients within the earlier monetary yr to 1.7 million.
The Auckland property recorded a rise in non-gaming income, which rose 16% to NZ181.4million(US107.6 million), supported by resort, meals and beverage operations and different actions.
The firm’s two smaller New Zealand casinos in Hamilton and Queenstown reported a slight decline in income to NZ73.9million(US43.9 million). Gaming income at these properties decreased 0.4% to NZ63.9million(US37.9 million).
NZICC Opening Adds Revenue While Costs Increase
SkyCity highlighted the opening of the New Zealand International Convention Centre (NZICC) as a serious improvement in the course of the yr. The venue opened on 11 February and hosted 141 occasions, attracting roughly 100,000 visits earlier than the top of FY26.
The firm expects the NZICC occasion pipeline to generate round 350,000 visits throughout FY27.
The conference centre contributed to larger non-gaming income, which elevated 13.4% throughout the group. However, working prices additionally rose by 8.4% on account of NZICC operations, funding in on-line playing preparations, elevated labour bills, know-how spending and compliance-related prices.
SkyCity additionally continued work forward of New Zealand’s deliberate regulated on-line playing market. The firm mentioned funding on this space contributed to larger bills in the course of the yr.
In Adelaide, the corporate reported income of AU212.1million(US151 million), broadly unchanged from the earlier yr. Gaming income declined 1.8% to AU143million(US102 million), whereas underlying EBITDA fell 31.5% to AU19.5million(US13.9 million).
SkyCity recorded a AU43million(US30.6 million) write-down associated to the Adelaide property and plans to start a strategic overview in the course of the first half of FY27.
Cost Reduction Plans Continue Into FY27
SkyCity mentioned it exceeded its price discount targets throughout FY26 and can proceed efforts by its Building a Better Business Programme.
The firm expects annualised financial savings of NZ30million(US17.8 million) throughout FY27, rising to whole advantages of NZ70million(US41.5 million) in FY28.
Walbridge mentioned the enterprise was adapting to altering market circumstances whereas specializing in operational enhancements.
“We are becoming a simpler, smarter, and more connected business, actioning further savings to deliver annualized benefits of NZ30million(US17.8 million) in FY27 and growing to total benefits of NZ70m(US41.5 million) in FY28. This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling.”
SkyCity additionally confirmed progress on resolving regulatory issues related with its Adelaide on line casino operations. The firm beforehand agreed to pay AU21million(US15 million) and implement management and governance modifications underneath an settlement with South Australia’s Liquor and Gambling Commissioner.
The operator didn’t present FY27 monetary steerage on account of continued macroeconomic uncertainty.
