SkyCity Entertainment Group made a notable return to net profit during its financial year ending June 30, 2025, despite facing a decline in overall revenue. The company, however, cautioned that earnings might experience a year-on-year drop in 2026, as it navigates a complex economic landscape.
For the fiscal year 2025, SkyCity’s group revenue amounted to NZ$825.2 million (approximately US$479.5 million). This represents a 4.2% decrease compared to the previous year’s NZ$861 million. The drop was attributed to reduced customer spending and a lower churn rate among VIP players at their Adelaide establishment. CEO Jason Walbridge pointed out that the economic recovery in New Zealand had been slower than anticipated, creating a challenging operating environment.
“The financial outcomes for FY25 highlight the difficulties we’ve faced,” he noted. The sluggish economic recovery in New Zealand led to reduced discretionary spending, impacting the business just as it entered a phase of heightened investment. This investment was particularly focused on upgrading regulatory systems, preparing for the opening of the New Zealand International Convention Centre (NZICC), and gearing up for the potential launch of online casino gaming in the country.
In July, New Zealand moved closer to legalizing iGaming with the introduction of the Online Casino Gambling Bill, following a governmental decision to regulate the currently unregulated online casino sector. The bill outlines the availability of 15 three-year licenses for the new market, requiring interested parties to submit detailed business plans. SkyCity, alongside TAB NZ, 888, and Bet365, has expressed interest in entering this nascent market.
Despite these developments, Walbridge remained reserved when discussing the potential for legal iGaming in New Zealand. He stated that the company was awaiting further guidance from the government and regulatory bodies. “We are waiting for more details on the auction process and license terms,” he remarked, acknowledging the three-year license term with a five-year renewal option.
Analyzing the financial specifics for FY25, most areas of SkyCity’s operations experienced revenue drops. Auckland’s revenue declined by 11.6% to NZ$209.6 million, while Hamilton and Queensland saw a 3.7% decrease to NZ$33.7 million. In Adelaide, revenue plummeted 21.5% to NZ$31.1 million. Despite these setbacks, total visitation across SkyCity’s casino properties increased by 4.6% to 10.5 million visits during the year, even amidst the slow economic recovery.
SkyCity’s online business, however, reported a significant downturn, slipping from NZ$3.6 million in revenue in FY24 to a NZ$1.8 million loss. The company attributed this to competitive pressures and continued investment in preparation for the anticipated online regulation in New Zealand.
There were bright spots in SkyCity’s financial report, particularly its bottom-line performance. The overall reduction in costs year-on-year helped counterbalance the revenue decline. A significant factor was the absence of expenses related to the NZICC fire from October 2019, as well as regulatory charges that impacted the previous year’s results. Consequently, operating profit surged by 164.4% to NZ$121.9 million. Even with increased finance expenses, pre-tax profit rose by 126.6% to NZ$68.2 million.
SkyCity also benefited from a significantly lower income tax bill, which stood at NZ$38.9 million compared to NZ$173.5 million in FY24. This previous year included a one-off tax expense of NZ$129.4 million due to changes in New Zealand’s tax laws affecting property depreciation.
By the close of FY25, SkyCity recorded a net profit of NZ$29.2 million, a stark contrast to the NZ$143.3 million loss in FY24. However, underlying EBITDA fell by 15.9% to NZ$233.7 million.
Looking ahead to FY26, SkyCity expects to face challenges, particularly with the implementation of carded play across New Zealand venues, requiring patrons to use a valid membership or loyalty card to gamble. “Carded play is now operational across all New Zealand sites, and early feedback from customers has been positive,” Walbridge stated.
The initiative is expected to impact previously uncarded revenue, estimated to equate to a NZ$20 million to NZ$30 million impact on EBITDA in FY26. Walbridge emphasized the importance of this change in enhancing host responsibility and operational efficiency, while providing valuable customer insights.
SkyCity anticipates continued market challenges due to the ongoing delay in New Zealand’s economic recovery, coinciding with elevated costs for regulatory system upgrades, the NZICC pre-opening, and the anticipated launch of regulated online gaming in winter 2026. Consequently, underlying EBITDA for FY26 is projected to range between NZ$190 million and NZ$210 million, falling short of FY25 results. The operator also expects increased interest costs, depreciation, amortization, and higher tax rates to affect net profit, with no dividends foreseen for FY26.
Looking further ahead, Walbridge expressed optimism for FY27, particularly regarding the expected iGaming launch in New Zealand. He anticipated improved earnings, with the NZICC projected to achieve breakeven status and the new online gaming business targeting breakeven in its first operational year. He conveyed confidence that spend per visit would increase as New Zealand’s economic conditions improve, bolstered by full-year benefits from NZICC visitation and associated spending. SkyCity, he asserted, is well-positioned to capitalize on forthcoming opportunities.
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