SkyCity Entertainment Group has reported a significant year-on-year EBITDA decline of 22.3% for FY26, largely attributed to decreased casino revenues and rising operational costs. For the fiscal year ending June 30, EBITDA dropped to NZ$181.6 million ($107.7 million), with underlying revenues falling slightly by 0.3% to NZ$822.7 million ($487.9 million). Gaming revenue for the group experienced a 5.9% decline.
The company indicated that the revenue drop stemmed from the implementation of carded gaming, decreased activity in premium gaming, and fewer customer visits and spending during the fourth quarter. Conversely, non-gaming revenue saw a 13.4% increase, buoyed by the February launch of the New Zealand International Convention Centre (NZICC), alongside higher hotel occupancy and food and beverage sales.
Operating expenses rose by 8.4%, influenced by costs linked to the NZICC, investments in online gaming, and increases in labor, technology, and compliance expenditures. Consequently, net profit fell by 37.6% to NZ$18.2 million ($10.8 million), while underlying net profit decreased by 46.9% to NZ$38 million ($22.5 million).
While SkyCity has not provided financial guidance for FY27, it aims for NZ$30 million ($17.8 million) in cost savings this year. The company is also preparing to enter New Zealand’s regulated online casino market, positioning itself to focus on cost reduction and addressing slower casino performance while gearing up for potential growth in the online gaming sector.
