SkyCity shares edge higher despite $86.2m impairment
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The news: SkyCity Entertainment said it expects to impair its Adelaide assets by $86.2 million due to the introduction of mandatory carded play at the SkyCity Adelaide casino in 2026, and additional legal and compliance costs associated with SkyCity Adelaide's uplift programmes.
The numbers: SkyCity also said it expected to record a tax adjustment of NZD129.6 million ($117.55 million) following recent changes to tax legislation.
Separately, the company has finalised agreements to extend NZD465 million of debt facilities across three, four and seven-year maturities, utilising a combination of its United States Private Placement (USPP) programme and its syndicated revolving credit facility.
The company's shares were 0.35% higher by 11:20am AEST.
The context: SkyCity's commitment to 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 gambling group said the move, which would also see customers' gambling sessions recorded, will "significantly increase its visibility and control of customer play", and simplify many parts of its current anti-money laundering and counter-terrorism financing operations.
SkyCity noted that the impairment and tax adjustment are both non-cash and do not impact the company's underlying earnings or profit for the 2024 financial year.
What they said: SkyCity CEO Jason Walbridge said: "The impairment is a non-cash accounting adjustment at balance date. SkyCity Adelaide continues to be a strategically important asset within the wider SkyCity Group".
The sources: ASX announcement, ASX announcement
