SkyCity Entertainment Group Limited (NS) Analysis

Overview

SkyCity Entertainment Group Limited is a leading entertainment and gaming business with a great brand and an iconic status as a New Zealand and Australian listed company. It operates monopoly casinos in New Zealand (Auckland, Hamilton and Queenstown) and Australia (Adelaide), alongside a variety of industry leading restaurants and bars, luxury hotels and convention centres.

Entertainment is the core business and SkyCity has a strong and enviable collection of assets, including some of the most significant major urban monopoly casino licences in New Zealand and Australia.

SkyCity is listed on NZX under the symbol of SKC since September 1995. It is also dual-listed on ASX since March 1999.

SKC has been granted Listing with a 'Non-Standard' ("NS") designation. This designation was granted due to the nature of SKC's constitution which contains various provisions reflecting the gaming legislation in the jurisdictions in which SKC operates, including provisions regulating the transfer and voting rights of its Ordinary Shares. For further information, please see SKC's annual report.

Performance

The following information was extracted from SkyCity Entertainment Group Limited's half year results, released 27 February 2026:

SkyCity Entertainment Group Limited (SkyCity) reports its interim results for the six months ended 31 December 2025 (1H26). The period saw several operational and regulatory changes, including the introduction of mandatory carded play across New Zealand casinos. The Group maintained its balance sheet and funding settings within policy parameters. FY26 Underlying EBITDA guidance remains unchanged, with a different earnings profile expected in the second half, predominantly due to cross-precinct benefits from the NZICC being realised.

Chief Executive Officer Jason Walbridge said, "The first half of FY26 reflected a planned period of operational transition, with the Group focused on the second half of the year and ongoing work to support long-term operating objectives.

We are undertaking a disciplined review of our operating model to ensure our cost structures reflect the current environment, while maintaining our commitment to compliance and customer experience."

Performance Highlights

Financial Results:

• Group revenue: $411.7 million (2.4% lower than the prior period)
• Group Underlying EBITDA: $85.5 million, compared with $119.5 million in the prior corresponding period (restated to exclude B3 costs)
• Reported Group NPAT: $12.1 million
• Underlying Group NPAT: $14.4 million
• No dividends are expected to be paid for the period

Operational and Regulatory Developments:

• Introduction of mandatory carded play across New Zealand casinos from July 2025 Continued investment in Anti-Money Laundering (AML) and Host - Responsibility capability
• Balance sheet and covenant headroom remained within policy settings

Financial Performance

Underlying EBITDA for 1H26 reflects the expected first-half earnings profile and the operational changes introduced during the period. Gaming revenue was affected by carded play in New Zealand, lower premium table volumes in Auckland and Adelaide, and VIP customer churn, partially offset by contributions from non-gaming businesses, including Food & Beverage and Hotels.