SkyCity Entertainment Group (SKC) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 31 December 2024 was $422 million, down 5% year-over-year, with over 5.4 million visits and a maintained margin of 27%.

• Reported NPAT was $6.1 million, a 73% decrease year-over-year, impacted by a $31.7 million settlement related to South Australia gaming duty interest.

• Underlying NPAT, excluding one-off items, was $37.8 million, down 41% year-over-year.

• Non-gaming activities now contribute nearly 30% of income, supporting diversification and risk mitigation.

• Strategic focus on risk transformation, digital and online expansion, and capital recycling to support future growth and regulatory compliance.

Financial highlights

• Group EBITDA was $113 million, down 22% year-over-year, with EBITDA margin at 26.8% (down from 32.6%).

• Underlying EPS was 5.0cps (down from 8.8cps), reported EPS 0.8cps.

• Operating cash flow was $78 million, in line with the prior period, despite a $76 million regulatory fine payment.

• Net tangible assets per equity security decreased to $0.9349 from $1.2056 in the prior comparable period.

• Hamilton and Queenstown EBITDA increased 5% due to higher revenues and cost control.

Outlook and guidance

• FY25 underlying Group EBITDA guidance revised to $225–$245 million, down from previous guidance of $245–$265 million.

• No dividend expected for FY25, but intention to resume as soon as financial metrics allow.

• Capital expenditure guidance maintained at $60–$70 million.

• NZICC opening in February 2026 anticipated to boost visitation and economic impact.

• Directors concluded there are no material uncertainties regarding going concern, supported by $230 million in undrawn banking facilities and liquidity forecasts.