SkyCity Entertainment Group (SKC) H2 2025 earnings summary

Executive summary

• FY25 group revenue was $825.2m, down 5%–11.1% year-over-year, mainly due to lower gaming revenue, higher VIP churn in Adelaide, and challenging economic conditions in New Zealand.

• Reported EBITDA rose 56.4% to $216.1m, but underlying EBITDA fell 15.9% to $233.7m, reflecting elevated regulatory and compliance costs.

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

• Over 10.5 million visitations, up nearly 5% year-over-year, but EBITDA per visit declined by $5 to $22.

• Major investments included the opening of the Horizon Hotel, ongoing NZICC development, and significant regulatory upgrades.

Financial highlights

• Underlying revenue declined to $825.2m, down 5%–5.9% year-over-year, mainly due to lower gaming revenue and VIP churn in Adelaide.

• Underlying EBITDA margin fell to 28.3% from 31.9%; reported EBITDA was $216.1m, underlying EBITDA $233.7m (excluding $17.6m B3 costs).

• Net debt increased to $757m, up $100m from the prior year, with net debt/EBITDA at 3.1x (covenant basis), expected to fall to 2.2x post-equity raise.

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

• Pro forma operating cash flow was $148.4m, excluding $76m in regulatory penalties and $27m in casino duty settlement.

Outlook and guidance

• FY26 underlying EBITDA is guided at $190–$210m; reported EBITDA at $170.6–$190.6m, reflecting ongoing economic weakness, carded play impact, and pre-opening costs for NZICC and online gaming.

• Minimum net cost savings of $10m targeted for FY26 to partially offset carded play impact.

• FY27 expected to see recovery, with NZICC and online gaming breaking even and economic improvement anticipated.

• No dividends expected in FY26; resumption targeted once trading and cash flows normalize.

• FY26 capex projected at $116m, including $45m for NZICC.