SkyCity reiterates FY guidance but flags 'subdued' trading
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The news: Casino operator SkyCity Entertainment reiterated its full-year earnings guidance, but expects "subdued" consumer discretionary spend to weigh on performance into 2025.
The numbers: SkyCity reaffirmed its FY25 earnings guidance of underlying group EBITDA of between $245 million and $265 million.
The context: The gambling group said the current financial year "continues to reflect a challenging economic environment", particularly in Auckland where the company is headquartered.
SkyCity noted that its key upcoming priorities include the independent review by South Australia's Liquor and Gambling Commission into the suitability the company's Adelaide casino licence.
It is also preparing for the rollout of 100% carded play with the aim of minimising the impact of its gaming operations. SkyCity estimates an initial impact of 15% to 12% of annual uncarded gaming revenue could be affected.
In August, the group said it expects to impair its Adelaide assets by $86.2 million due to the introduction of mandatory carded play at its SkyCity Adelaide casino in 2026, as well as additional legal and compliance costs associated with SkyCity Adelaide's uplift programmes.
Mandatory carded play across its casinos will require every customer to play with a unique identifier, ensuring all electronic gaming bets are linked to a customer's identity.
The source: ASX announcement
