SkyCity shares drop after guidance downgrade
Make us a preferred source
Make us a preferred source on Google
More news: Shares in SkyCity have slumped 2.3% after the New Zealand casino operator reduced its forward guidance and flagged a likely slide in FY24 earnings. It now expects EBITDA in a range between $NZ290 million ($271 million) and $NZ310 million, the upper bound on par with FY23 earnings. It had previously expected a modest year-on-year improvement.
SKC shares were trading at $1.685 at 2:25pm AEDT.
SkyCity cuts FY24 earnings guidance after soft performance
The news: New Zealand casino group SkyCity Entertainment has lowered its earnings expectations following the first five months of trading.
The numbers: SkyCity said it now expects normalised earnings before interest, taxes, depreciation and amortisation for FY24 of between $NZ290 million ($271 million) and $NZ310 million ($290 million), compared to NZD310 million in FY23 and previous guidance in October of a modest year-on-year increase in earnings. The dual-listed gambling and entertainment group expects normalised profit in the range of $NZ125 million and $NZ135 million, down from $NZ138.8 million in FY23.
The context: The Auckland-based company's announcement cited a number of key drivers to the change in earnings guidance, including a reduction in electronic gaming machine revenue across its New Zealand sites, weaker than expected performance at its Adelaide Casino, delays to its settlement over a car park concession agreement in Auckland, and its accelerated investment in online gaming operations. The guidance does not include mention of a potential suspension of its casino license in New Zealand, currently being reviewed by the country's Gambling Commission.
The source: ASX announcement
