“Challenging” market in H1 sees SkyCity lower full-year earnings guidance
Revenue during the six months to 31 December 2024 amounted to NZ$422 million (£191.7 million/€231.7 million/US$241.7 million). This is 4.7% lower than H1 of the previous year, SkyCity revealed in figures published today (20 February).
The operator reported declines across several operating segments, including its online arm. Activities in Adelaide and Auckland also led to small revenue declines.
Commenting on the half year, CEO Jason Walbridge said that SkyCity continues to be impacted by “challenging” market conditions.
This, he added, has led to “subdued consumer confidence”, although he noted that casino visitor numbers are improving. In total, 5.4 million people visited SkyCity locations in H1, up 5.9% from the previous year.
It did say it was preparing for the launch of regulated online casino in New Zealand in 2026 and working with the government as it prepares regulations for the market.
Cabinet papers filed in September 2024 reported SkyCity was one of a few grey market operators interested in applying for an igaming licence.
Tab NZ, Grand Casino Dunedin, Christchurch Casino, Class 4 societies, 888, Bet365, SpinBet, Spin City and Super Group (including Betway) were also listed as interest parties.
Auckland decline hits SkyCity
Breaking down revenue performance, gaming accounted for 71% of total revenue in H1. The other 29% came from non-gaming, split across food and beverage (14%), hotels (8%) and entertainment and other (7%).
Auckland operations, SkyCity’s primary source of total revenue, reported a drop in total underlying revenue to $258.3 million from $280.6 million the previous year. Softer market conditions were only partially offset by stronger contributions from the Horizon Hotel, increased carpark income and higher contribution from the Sky Tower.
On its Auckland activities, SkyCity provided an update on the opening of the New Zealand International Convention Centre (NZICC). The new facility is due to welcome visitors from February 2026, with SkyCity saying this will be a “game changer” for the region.
“We expect to see a boost of around 500,000 visitor days a year to SkyCity Auckland with the facility providing a significant lift to the wide Auckland and New Zealand economies,” Walbridge said.
Elsewhere, in Hamilton and Queenstown, underlying revenue was down slightly to $38.3 million, despite a rise in gaming and non-gaming visitor numbers. However, H1 revenue in Adelaide was 5.5% higher at $123.2 million amid a higher number of visitors during H1.
Online underlying revenue fell 62.5% to $2.1 million. SkyCity put this down to an “uneven regulatory environment” and increased investment in future team capability, as the group continues to build its online offering.
The remaining $100,000 in revenue came from corporate activities, down 90.9%.
Underlying EBITDA for the group was $113 million in H1, down 22% year-on-year.
SkyCity set to miss full-year target
On the back of declines in H1, SkyCity has adjusted full-year expectations. Underlying group EBITDA for the year is now forecast at between $225 million and $245 million, compared to earlier guidance of $245 million to $265 million.
This, Walbridge said, is due to the expected continuation of current “challenging” economic conditions. SkyCity also maintained that no divided is expected for the 2025 financial year.