SkyCity to close casino for five days, cuts guidance again
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The news: Casino operator SkyCity Entertainment has lowered its earnings expectations again after agreeing to temporarily close its Auckland casino as part of an agreement with regulators.
The numbers: SkyCity said it will close the gambling area of the Auckland casino for five consecutive days in 2024, with the dates to be mutually decided with the NZ Department for Internal Affairs.
As a result, its earnings will take a hit of NZD5 million ($4.5 million) resulting in a lowered FY25 earnings guidance range of NZD245 million to NZD265 million, down from NZD250 million to NZD270 million.
The context: The impending closure comes in response to breaches of SkyCity’s licence terms after some incidents of continuous play by a customer were detected, which the company attributed to technology system errors.
The dual-listed SkyCity last month lowered its earnings expectations and suspended dividends amid a challenging economic environment and looming penalty payments to regulators. This included a $67 million fine in Australia to settle anti-money laundering law breaches between 2016 and 2022, and a NZD4.16 million fine for breaching New Zealand’s anti-money laundering laws.
The source: ASX announcement
