SkyCity rebounds post-COVID, AUSTRAC looms

The news: Casino operator SkyCity Entertainment has bounced back to profit in its first year of trading free from COVID restrictions since the pandemic began. However, regulatory undertakings capped returns for the casino owner-operator.

The numbers: Dual-listed SkyCity reported a full-year net profit after tax of NZD22.8 million ($21.1 million), up from a NZD33.6 million loss the year before. The casino group said profits were heavily impacted by a $45 million provision for AUSTRAC proceedings against SkyCity Adelaide, and a further $45.6 million impairment of the Adelaide Casino license. Group revenue was up 44.9% to NZD926.2 million, and EBITDA was up 71.1% to $165.9 million. Shares were trading 2.48% higher at 1:10pm AEST.

The context: Australian anti-money laundering watchdog AUSTRAC launched civil proceedings against SkyCity in December 2022. Pending the result, South Australia's Consumer and Business Services regulator will weigh up SkyCity's suitability to continue holding a casino license in the state. In the results announcement, SkyCity boss Michael Ahearne said the group had made continued progress in enhancing its anti-money laundering and counter-terrorism financing capabilities in recent years.