SkyCity Entertainment Group (SKC) investor relations material

Executive summary

• FY 2025 results were in line with guidance, but underlying revenue fell 5.2% to $825.2M and earnings declined due to lower gaming revenue, economic headwinds, and increased regulatory costs.

• Visitation increased 4.6%, mainly in Adelaide, but total gaming revenue fell 8.4% year-over-year and EBITDA per visit declined by $5 to $22.

• Major milestones included the opening of the Horizon Hotel, rollout of Card to Play and a new loyalty program in New Zealand, and ongoing NZICC development.

• Regulatory progress in Adelaide included settlement of legacy disputes, positive suitability findings, and conclusion of regulatory review.

• Underlying NPAT dropped 42% to $71.5M, while reported NPAT was $29.2M, rebounding from a prior year loss.

Financial highlights

• Underlying EBITDA was $233.7M (down 15.9%), reported EBITDA $216.1M (up 56.4%), both impacted by lower revenue and one-off costs.

• Net debt rose to $757M, up $100M from the prior year, mainly due to regulatory fines, interest payments, and capital requirements.

• EBITDA margin declined to 28.3% from 31.9%, reflecting lower high-margin gaming revenue and increased compliance costs.

• Cost savings of $19M were achieved, with further reductions targeted for FY 2026.

• Non-operating one-off charges totaled $311M, including carpark repurchase and regulatory penalties.

Outlook and guidance

• FY 2026 underlying EBITDA is guided at $190M–$210M, with reported EBITDA at $170.6M–$190.6M, reflecting ongoing economic weakness and regulatory investments.

• Minimum net cost savings of $10M targeted for FY 2026 to partially offset Card to Play impact.

• CapEx expected to rise to $116M in FY 2026, including $25M–$45M for NZICC.

• No dividends expected in FY 2026; resumption targeted post-normalization of trading and cash flows.

• FY 2027 expected to see recovery as NZICC and online gaming reach breakeven and economic conditions improve.