SkyCity shares tumble on earnings downgrade
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More news: Shares in SkyCity have tumbled nearly 9% to 96 cents in early trading on the ASX after the casino operator cut its full-year earnings guidance for the second time in three months citing deteriorating market conditions.
It now expects full-year earnings to be 4% below the bottom end of its NZ$225 million to NZ$245 million ($208 million to $226 million) range announced in February.
SkyCity cuts full-year earnings guidance again
The news: Casino operator SkyCity Entertainment has cut its full-year earnings guidance for the second time in three months citing deteriorating market conditions since its first half results in February.
The numbers: SkyCity now expects full-year earnings to be below the bottom end of its NZD225 million to NZD245 million ($208 million to $226 million) range announced in February.
That was already a downgrade on the previous NZD245 million to NZD265 million estimate.
The context: Skycity said while its Hamilton and Queenstown casinos have continued to perform broadly in line with expectations, Auckland has seen reduced spend per visit across both its hospitality and gaming business. In Adelaide, performance has been impacted both by lower visitations and lower spend by VIP gaming customers due to the uplift in its anti-money laundering and harm minimisation program.
“The difficult market conditions that businesses like ours - which are reliant on discretionary consumer spending - are experiencing continue to have a significant impact on both our revenues and earnings,” CEO Jason Walbridge said in a statement.
The source: ASX
