SkyCity Entertainment Group (SKC) H2 2026 earnings summary

Executive summary

• Underlying EBITDA for FY 2026 was $181.6m, down 22.3% year-over-year, in line with revised guidance amid macroeconomic headwinds and a $20m negative impact from the Middle East conflict.

• Asset monetisation program is on track, with $200m achieved and total gross proceeds of $275–$300m targeted by December 2026.

• Strategic cost-out programme underway, targeting $30m in FY27 and $70m annualised by FY28.

• NZICC opened in February 2026, hosting 141 events and ~100,000 visitations, with breakeven EBITDA expected in FY28.

• Regulatory agreement in Adelaide includes a $21m/A$21m fine and enhanced governance requirements.

Financial highlights

• Underlying revenue was $822.7m, down 0.3% year-over-year; reported revenue was $878.9m, up 6.5%.

• Underlying EBITDA was $181.6m (down 22.3%); reported EBITDA was $120.5m (down 44.2%).

• Underlying NPAT was $38.0m, down 46.9%; reported NPAT was $18.2m, down 37.6%.

• Capital expenditure was $95.4m, below guidance, with $32.9m for NZICC.

• Cash flow from operations was $121.7m, up 169.2% year-over-year.

Outlook and guidance

• No formal FY27 earnings guidance due to macroeconomic uncertainty; trading update expected in October.

• FY27 capex expected at $80–$100m, excluding online licence costs.

• Cost out programme targeting $30m in FY27 and $70m in FY28.

• Online casino market entry planned for June 2027, with a staged and disciplined approach.

• Focus on debt reduction, operational efficiency, and reinstating dividends when possible.