SkyCity revenue rises 6.5% to $522m as profit falls 37.6%

SkyCity Entertainment Group has reported revenue of NZ$878.9m (US$522m) for the year ended 30 June 2026, an increase of 6.5% year-on-year, while reported net profit after tax declined 37.6% to NZ$18.2m. 

Reported EBITDA fell 44.2% to NZ$120.5m. On an underlying basis, revenue decreased 0.3% to NZ$822.7m, adjusted EBITDA dropped 22.3% to NZ$181.6m and net profit fell 46.9% to NZ$38m.

The operator attributed the difference between reported and underlying earnings partly to accounting adjustments and NZ$23.5m in costs connected with its Building a Better Business remediation programme in Adelaide.

Lower gaming revenue reflected the introduction of carded play at SkyCity’s New Zealand casinos, weaker visitation and reduced customer spending during the fourth quarter. Higher non-gaming revenue, including a contribution from the New Zealand International Convention Centre after its February opening, partly offset the decline.

SkyCity has started a strategic review of its Adelaide operation following what it described as significant regulatory and operational change. It also recorded an AU$43m (US$30.63m) reduction in the casino’s accounting carrying value.

The review follows an in-principle agreement with South Australia’s Consumer and Business Services over findings from the Martin independent review. The proposed settlement includes an AU$21m fine payable in three instalments over two years and additional governance and compliance measures. 

The Martin review found that improvements made by April 2024 had restored the operator’s suitability to retain Adelaide’s sole casino licence despite earlier failures involving anti-money laundering controls, harm minimisation and corporate culture. 

SkyCity ended the period with net debt of NZ$591m. Its asset monetisation programme is expected to generate gross proceeds of NZ$275m to NZ$300m, which will be directed towards debt reduction.

The operator is also targeting NZ$30m in realised cost benefits during FY27, rising to NZ$70m in FY28. The programme could affect between 200 and 250 roles, primarily in New Zealand. No final dividend will be paid and SkyCity has withheld FY27 earnings guidance because of economic uncertainty. 

In July, SkyCity’s NZ$74.5m sale of Auckland commercial properties became unconditional, with settlement expected in September and the proceeds allocated to debt repayment.