SkyCity Entertainment Group has reported a 22.3% decrease in EBITDA for the fiscal year 2026, primarily attributed to a downturn in casino revenues and rising operating costs. The company's EBITDA dropped to NZ$181.6 million ($107.7 million) for the year ending June 30. Underlying revenues also saw a slight decline of 0.3%, settling at NZ$822.7 million ($487.9 million), with gaming revenues specifically down by 5.9% compared to the previous year.
The revenue downturn is linked to several factors, including the implementation of carded gaming, reduced activity in high-end gaming segments, and a fall in customer visits and spending observed in the fourth quarter. Conversely, non-gaming revenue grew by 13.4% following the February opening of the New Zealand International Convention Centre (NZICC), alongside increased hotel occupancy and higher food and beverage sales.
Operating expenses rose by 8.4% due to costs related to the NZICC, investments in online gaming, and rising labor and compliance costs. Consequently, the company’s net profit decreased by 37.6% to NZ$18.2 million ($10.8 million), while underlying net profit fell more sharply by 46.9% to NZ$38 million ($22.5 million).
SkyCity has not provided financial guidance for FY27 but aims to achieve NZ$30 million ($17.8 million) in cost savings throughout the year. The company is also preparing to enter New Zealand's regulated online casino market, indicating a focus on cost-cutting, improving casino performance, and fostering potential growth in online gaming as it begins FY27.
