SkyCity FY26 profit tumbles to $18.2M amid asset sales
- The company posted a 37.6% decline in reported net profit to NZ$18.2 million.
- Executives stated that asset monetisation is expected to yield between NZ$275 million and NZ$300 million.
- Management stated that ongoing cost reductions and property sales are designed to simplify operations.
SkyCity Entertainment Group (ASX:SKC) posted a 37.6% net profit decline to NZ$18.2 million amid asset sales.
Group underlying EBITDA fell to NZ$181.6 million, while net debt reached NZ$591 million.
The result compares to the prior period, where underlying revenue remained mostly unchanged at NZ$822.7 million.
"Focus for the business is to execute on key priorities, return to positive cash flow and, when achieved, reinstate dividends," said SkyCity CEO Jason Walbridge.
The business finalised an Adelaide regulatory review with a $21 million fine. The company did not provide guidance for FY27 amid macroeconomic uncertainty.
The company stated that cost savings are targeting NZ$70 million by 2028.
Following the announcement, the Sky City share price was down at $0.49.
Recent operational developments included rolling out mandatory carded play across all New Zealand casinos.
The group also opened the New Zealand International Convention Centre in February with 100,000 initial visitations.
