SkyCity Entertainment Group revealed a significant drop in its EBITDA for FY26, reporting a decline of 22.3% largely driven by reduced casino revenues and rising operating costs. For the year ending June 30, EBITDA fell to NZ$181.6 million ($107.7 million), while total revenues showed a slight decrease of 0.3%, landing at NZ$822.7 million ($487.9 million). Notably, gaming revenues dropped by 5.9% over the year.
SkyCity attributed this revenue decline to factors such as the introduction of carded gaming, decreased activity in premium gaming sectors, and fewer customer visits and expenditures, particularly in the fourth quarter. In contrast, revenues from non-gaming operations saw a 13.4% increase, benefitting from the launch of the New Zealand International Convention Centre (NZICC) in February, coupled with higher hotel occupancy rates and food and beverage sales.
Operating expenses rose by 8.4%, largely due to costs associated with the NZICC, investments in online gaming, and higher labor, technology, and compliance costs. Consequently, the company experienced a 37.6% decrease in net profit, which fell to NZ$18.2 million ($10.8 million), while underlying net profit decreased by 46.9%, closing at NZ$38 million ($22.5 million).
SkyCity has not provided financial guidance for FY27; however, it aims to achieve NZ$30 million ($17.8 million) in cost savings over the coming year. The company is committed to preparing for entry into New Zealand's regulated online casino market while prioritizing cost reduction and addressing its weaker casino performance.
