SkyCity Entertainment Group reported a 22.3% decline in underlying EBITDA to NZ$181.6 million for the year ended June 30, 2026, in line with revised guidance issued in May. The drop of NZ$52.1 million reflected a 5.9% fall in gaming revenue, partially offset by a 13.4% rise in non-gaming revenue.
Underlying revenue edged down 0.3% to NZ$822.7 million, while operating expenses increased 8.4% to NZ$641.1 million, driven by a NZ$32 million rise in labor costs. Cash flow from operations surged 169.2% to NZ$121.7 million, supported by tighter cost controls. Capital expenditure fell to NZ$95.4 million, below the NZ$100–110 million guidance, with FY27 capex projected at NZ$80–100 million.
Net debt declined to NZ$590.7 million from NZ$756.8 million a year earlier, aided by a NZ$229 million equity raise. Available liquidity stood at NZ$185.9 million as of June 30, while the average borrowing cost improved to 5.32% from 5.84%. The covenant leverage ratio was 3.1x, marginally above the ~3.0x target set in August 2025.
The Auckland precinct, SkyCity’s largest segment, saw EBITDA fall 14.2% to NZ$179.8 million, with gaming revenue down 11.3% to NZ$317.2 million. Non-gaming revenue rose 16.0% to NZ$181.4 million, though EBITDA margins compressed to 36.1% from 40.8%. Hamilton and Queenstown combined EBITDA slipped 6.6% to NZ$31.4 million, while Queenstown’s 15-year casino license was renewed in December 2025. Adelaide’s underlying EBITDA dropped 31.5% to A$19.5 million, with a A$42.9 million non-cash impairment and a A$21 million fine agreed under a settlement with regulators.
SkyCity outlined a NZ$275–300 million asset monetization program, including the unconditional sale of commercial properties at 99 Albert Street and Victoria Street for NZ$74.5 million, settling in September 2026. The Grand Hotel is under a non-binding agreement with due diligence underway. A cost-out program targeting NZ$30 million in FY27 and NZ$70 million by FY28 is expected to affect 200–250 roles, with consultations concluding by October 2026. The company also completed the rollout of its Carded Play system across New Zealand properties in July 2025, contributing NZ$20–30 million to FY26 EBITDA.
The New Zealand International Convention Centre, opened in February 2026, hosted 141 events and 100,000 visitations in its first four months. FY27 is expected to see ~350,000 visitations across ~350 events, including major conferences. SkyCity also highlighted progress toward launching an online casino market, with legislation enacted in May 2026 and licenses to be auctioned in September 2026. The market, valued at over NZ$1 billion, will permit up to 15 licenses initially, with regulatory restrictions including age verification and advertising bans.
SkyCity’s share price rose 4.08% to $0.51 following the presentation. No dividend was declared for FY26.
