New Zealand Operator Files NZ$181.6 Million Underlying EBITDA, Plans NZ$30 Million in Cost Savings and Strategic Review for Adelaide
SkyCity Entertainment Group has released its financial results for the fiscal year ended June 30, 2026, revealing a 22.3% year-on-year decline in underlying EBITDA down to NZ$181.6 million (approx. $107.7 million). The downturn was primarily driven by softness in casino revenues and escalating operational expenses, which outweighed robust growth across the group’s non-gaming hospitality and convention divisions.
Financial Performance Overview and Revenue Metrics
Underlying revenue for FY26 saw a marginal decline of 0.3% to NZ$822.7 million (approx. $487.9 million). Group gaming revenue dropped 5.9% over the period, impacted heavily by the implementation of carded play, softer premium gaming segments, and reduced customer visitation and spending during the fourth quarter.
Bottom-line profitability reflected the broader operational pressures:
- Reported Net Profit After Tax (NPAT): Declined 37.6% to NZ$18.2 million ($10.8 million).
- Underlying Net Profit: Fell 46.9% to NZ$38 million ($22.5 million).
- Operating Expenses: Rose 8.4%, driven by operational costs associated with the New Zealand International Convention Centre (NZICC), investments in online gaming infrastructure, higher labor expenses, and increased compliance and technology spending.
Conversely, non-gaming revenue experienced a 13.4% boost, largely propelled by hotel operations, food and beverage performance, and the grand opening of the NZICC in February.
Auckland Operations and NZICC Milestone
At SkyCity Auckland, gaming revenue fell 11.3% to NZ$317.2 million ($188.1 million). This decrease was partially cushioned by a 16% rise in non-gaming revenue, reaching NZ$181.4 million ($107.6 million). Consequently, the Auckland property’s underlying EBITDA declined 14.2% to NZ$179.8 million ($106.6 million).
The newly launched NZICC has proven to be a strong operational asset, hosting 141 events and recording approximately 100,000 visits from its February 11 opening through the end of the financial year. The venue enters FY27 with a robust event pipeline expected to draw approximately 350,000 visits.
Adelaide Property Write-Down and Strategic Review
SkyCity’s Adelaide property faced significant headwinds, recording a 31.5% decline in underlying EBITDA down to A$19.5 million ($13.9 million) despite stable revenue figures.
Reflecting these valuation and performance challenges, the group recorded an A$43 million ($30.6 million) write-down on the Adelaide asset. Management has confirmed that a comprehensive strategic review of the Adelaide operations will take place during the first half of FY27 to assess asset performance and future value.
Cost Savings and Strategic Outlook for FY27
Due to prevailing macroeconomic uncertainties, SkyCity has chosen not to issue formal guidance for fiscal 2027. However, the company has established a firm target of NZ$30 million ($17.8 million) in cost savings for FY27.
At the same time, the operator is continuing active preparations to enter New Zealand’s upcoming regulated online casino market. These cost-reduction initiatives and digital expansions will run parallel to ongoing efforts to optimize property performance and navigate evolving regulatory frameworks.
