SkyCity Entertainment Group (SKC) H1 2026 earnings summary

Executive summary

• Interim FY2026/1H26 results aligned with guidance, reflecting a transitional period with lower earnings due to regulatory changes, operational investments, and major initiatives such as the NZICC opening and carded play rollout.

• Strong cost-saving measures delivered in 1H, with further savings expected in 2H.

• Asset monetisation efforts ongoing, targeting $200 million in proceeds by February 2027 to reduce leverage.

• NZICC opened in February 2026, with a robust pipeline of events and lower-than-expected opening costs.

• Carded play and loyalty program successfully rolled out in NZ casinos, enhancing customer insights and compliance.

Financial highlights

• Revenue for the period was $411.7 million, down 2.4% year-over-year, mainly due to a 6.3% drop in gaming revenue, partially offset by non-gaming growth.

• Underlying EBITDA fell 28% to $85.5 million; reported EBITDA was $72.1 million, down 36.3% year-over-year.

• Reported NPAT rose to $12.1 million, while underlying NPAT dropped to $14.4 million.

• Positive operating cash flow of $56.1 million funded $36.5 million of CapEx.

• Net debt at $594 million; net debt/EBITDA at 2.83x, with all covenants met.

Outlook and guidance

• FY26 underlying EBITDA guidance reiterated at $190–210 million; reported EBITDA at $170.6–190.9 million.

• Second-half earnings expected to be stronger, driven by NZICC, cost savings, and non-gaming growth.

• FY26 CapEx forecasted at $100–110 million; no dividend planned for FY26.

• Online gaming regulation in NZ delayed, with market opening expected between December 2026 and June 2027.