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 20 February 2025:

Group revenue of $422 million is down 5% on the prior corresponding period and Group EBITDA of $113 million is down 22% on the prior corresponding period, due primarily to lower customer spend on visitation levels essentially maintained year on year.

Underlying Group NPAT of $38 million was down 41% on the prior corresponding period due to the lower level of earnings and increased costs arising from our on going transformation programme.

Reported: Net Profit After Tax: $6.1m (-$16.5m) -73.1%, 0.8cps

Underlying: Net Profit After Tax: $37.8m (-$26.8m) -41.5%, 5.0cps

Name of Listed Issuer: SkyCity Entertainment Group Limited

CONSOLIDATED OPERATING STATEMENT

Current Interim Period NZ$: Up/Down %: Previous Corresponding Period NZ$

REPORTED REVENUE (excl GST) FROM CONTINUING OPERATIONS

$422.0m: down 5.2%: $445.2m

TOTAL REPORTED REVENUE (excl GST)

$422.0m: down 5.2%: $445.2m

REPORTED NET PROFIT FROM CONTINUING OPERATIONS

$6.1m: down 73.1%: $22.5m

TOTAL REPORTED NET PROFIT

$6.1m: down 73.1%: $22.5m

EARNINGS PER SHARE (REPORTED)

0.8cps: down from 3.0cps

UNDERLYING REVENUE (excl GST)

$422.0: down 4.7%: $442.8m

UNDERLYING NET PROFIT

$37.8m: down 41.5%: $64.5m

EARNINGS PER SHARE (UNDERLYING)

5.0cps: down from 8.5cps