SkyCity Entertainment Group is set to raise $NZ240 million ($217 million AUD) in equity. This move aims to strengthen the company’s balance sheet following a period of subdued financial performance, as New Zealand’s economic recovery lags. SkyCity Entertainment Group owns and operates casinos, hotels, and entertainment facilities in New Zealand and Australia. The company provides a range of gaming, hospitality, and tourism services to both local and international customers.
The company’s underlying revenue for FY25 was $NZ825.2 million, a 5 per cent decrease year-on-year. Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) also fell, dropping almost 16 per cent to $NZ233.7 million. SkyCity attributed these declines to reduced discretionary spending, VIP customer churn in Adelaide, and increased investment costs. Despite these challenges, the reported Group net profit after tax showed improvement, reaching $NZ29.2 million, up from a loss of $143.3 million in the previous year. This figure accounts for a $27.3 million settlement related to South Australian casino duty.
The $NZ240 million equity raising consists of an $NZ81 million institutional placement and an $NZ159 million entitlement offer, priced at 70¢ per share. SkyCity shares will remain in a trading halt until the equity raising is completed. Looking ahead, SkyCity anticipates underlying EBITDA to be in the range of $NZ190 million to $NZ210 million. The company expects FY27 earnings to receive a boost from the New Zealand International Convention Centre (NZICC) reaching breakeven and the introduction of regulated online gaming.
