SkyCity downgrades FY26 forecast amid inflationary pressures
SkyCity Entertainment Group Limited (ASX:SKC) has lowered its financial expectations for the remainder of the 2026 fiscal year, citing a downturn in consumer discretionary spending across its Australian and New Zealand operations.
The company now projects its underlying EBITDA to fall within the range of $180 million to $190 million, a notable decrease from the previously forecasted $190 million to $210 million.
Reported EBITDA guidance has also been adjusted downward to a range of $155 million to $165 million, down from the earlier estimate of $170.6 million to $190.6 million.
Management highlighted that trading performance and guest visitation have been particularly strained since March 2026, largely due to rising fuel costs.
These economic headwinds have had the most significant impact on the company’s primary precincts in Auckland and Adelaide.
While the group has already surpassed its initial $10 million cost-saving target, it is now engaging external advisors to implement additional austerity measures across its corporate and operational functions.
In a move to strengthen its balance sheet, SkyCity is progressing with its asset monetization program, recently entering into a non-binding heads of agreement to sell its 99 Albert Street office building and Victoria Street investment properties.
Furthermore, the company is actively seeking expressions of interest for the sale of The Grand Hotel.
Despite these divestments, SkyCity expressed optimism regarding the Online Casino Gambling Act 2026, which took effect on May 1, though licensing is not expected to commence until early 2027