SkyCity Entertainment Group has reported a 22.3% decline in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fiscal year 2026. This downturn is attributed to a drop in casino revenues coupled with rising operating costs. As of June 30, the EBITDA stood at NZ$181.6 million (approximately $107.7 million), while underlying revenues slightly decreased by 0.3% to NZ$822.7 million (about $487.9 million). Gaming-related revenues saw a steeper decline, falling by 5.9% over the same period.
The company indicated that the revenue decline stemmed from the implementation of carded gaming, reduced activity in premium gaming segments, and a decrease in both customer visits and spending noted in the fourth quarter. Conversely, revenues generated from non-gaming activities rose by 13.4%. This growth was bolstered by the February launch of the New Zealand International Convention Centre (NZICC) and an uptick in hotel occupancy, along with increased food and beverage sales.
Operating expenses surged by 8.4%, primarily due to costs associated with the NZICC, investments in online gaming, and rising labor and compliance expenditures. Consequently, SkyCity's net profit fell by 37.6% to NZ$18.2 million (around $10.8 million), while the underlying net profit decreased by 46.9% to NZ$38 million (approximately $22.5 million).
Although the company has refrained from providing financial guidance for FY27, it aims to achieve cost savings of NZ$30 million (about $17.8 million) during the year. Additionally, SkyCity is preparing to enter New Zealand's regulated online casino market. As FY27 begins, the company is prioritizing cost reductions, addressing the weaker performance of its casino operations, and laying the groundwork for potential growth in online gaming.
