SkyCity Entertainment Group is targeting NZ$70m in annual cost benefits by FY28 as it continues reducing debt, reshaping its operations and preparing to enter New Zealand's regulated online casino market.
Speaking at the group's 2026 Annual Shareholders' Meeting, CEO Jason Walbridge said SkyCity had exceeded its initial NZ$10m FY26 cost reduction target. The programme has since been expanded to NZ$30m of realised benefits in FY27 and NZ$70m in FY28.
The measures include changes to SkyCity's operating model affecting almost 250 corporate and back-office positions, alongside supplier contract reviews and greater investment in technology, including artificial intelligence.
SkyCity is also nearing completion of its asset monetisation programme. Following the conditional sale of The Grand Hotel announced last week, the group expects its asset disposals to generate close to NZ$300m in gross proceeds by December.
The proceeds are expected to help reduce SkyCity's net debt-to-underlying EBITDA ratio to around 2.0x by the end of FY27, including the cost of its online casino licences.
SkyCity recently secured the right to apply for two of New Zealand's 15 online casino licences. The group is now preparing its applications, having opted for two licences rather than the maximum three permitted after assessing its risk-adjusted return targets.
The regulated online casino market is expected to launch in the second half of FY27, although SkyCity said the exact timing remains uncertain.
Meanwhile, first-quarter FY27 trading was consistent with the final quarter of FY26. Revenue was tracking in line with expectations despite subdued consumer conditions in New Zealand and Australia, while around a quarter of SkyCity's targeted full-year cost benefits had already been achieved.
SkyCity is not providing formal FY27 guidance, citing uncertainty surrounding its online market entry and wider economic conditions
