SkyCity swings to full-year profit, announces NZ$240m equity raise
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The news: New Zealand-based casino operator SkyCity Entertainment has swung to a full-year statutory profit of NZD29.2 million ($26.4 million), following a NZD143.3 million loss last year, as the group announced a NZD240 million equity raise to boost its balance sheet.
The numbers: The net profit result was lower than the market consensus estimate of a NZD37.4 million profit, according to Visible Alpha.
While SkyCity returned to a full-year statutory profit, underlying net profit of NZD71.5 million was down 42% on the prior year, with the company citing a "lower level of earnings and increased interest expense, partially offset by a lower tax expense."
EBITDA came in at NZD216.1 million, which was 56.4% higher than the NZD138.2 million posted in FY24 and above the consensus estimate of NZD203.5 million.
This was within the updated EBITDA guidance range of NZD225 million to NZD245 million. SkyCity downgraded the EBITDA guidance range on two occasions this year. The group has guided EBITDA of NZD170.6 million to NZD190.6 million in FY26.
No dividend was declared, in line with market expectations.
SkyCity's NZD240 million equity raise will comprise an NZD81 million institutional placement and a NZD159 million entitlement offer. The equity raise will be at a fixed price of 70 NZ cents per share, representing a 30% discount to its last traded price on the NZX.
The company said it has also identified a number of key assets to be divested in FY26, targeting a combined NZD200 million over the next 12 to 18 months.
The context: SkyCity, which entered a trading halt on Tuesday ahead of the planned equity raise, said it is "yet to observe any positive change in consumer discretionary spending in the subdued New Zealand economy".
Chief executive Jason Walbridge said the result reflected a "difficult operating environment", with lower discretionary spend coming at a time of elevated investment.
The investment has been centred on regulatory systems upgrades, pre-opening costs for the delayed New Zealand International Convention Centre, and preparation for online casino gaming in New Zealand, he said.
The source: ASX
