SkyCity swings to full-year loss amid challenging environment
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The news: Casino operator SkyCity Entertainment has swung to a full-year loss on the back of impairments and tax adjustments, although its underlying result was in line with guidance.
The numbers: It reported a statutory loss of NZD143.3 million ($130.8 million) for the year to June, compared to an NZD8 million profit a year ago. It attributed this to an $86.2 million writedown of its Adelaide casino and a tax adjustment of NZD129.6 million following New Zealand tax rules changes.
Underlying profit was down 7% to NZD123.2 million, within its guidance range of NZD120 million to NZD125 million. Underlying earnings also fell 8% to NZD277.8 million, slightly below its guidance range of NZD280 million to NZD285 million. Revenue rose 0.3% to NZD928.5 million and the company will pay no dividend.
The context: The dual-listed company said the performance was a solid result despite the challenging environment. It reported a reduction in gaming revenue, and the change in the revenue mix had an impact on margins.
The company said dividends will remain on hold in FY25 as it progresses its NZ International Convention Centre (NZICC) and meets regulatory demands following settlements with Austrac in Australia and NZ's Department of Internal Affairs over historic non-compliance with anti-money laundering laws.
The group expects underlying earnings to be lower in FY25 in the range of NZD245 million to NZD265 million.
The source: ASX
