New Zealand – SkyCity raises EBIDTA guidance following improved operating conditionsBy Phil - 24 May 2023
New Zealand casino operator SkyCity Entertainment Group has revised its earnings prediction for the year ending June 30 2023, due to improved operating conditions, raising its guidance on EBITDA to between NZ$300 and NZ$310m.
The operator highlighted that the current ‘revenue trend, reflecting some uplift from New Zealand tourism recovery, was partically offset by Auckland weather events.’
It detailed that EGM performance was ‘strong’ while table gaming re,ained ‘subdued across all properties,’ leading to ‘robust but softening customer demand.’ There had also been an increase in ‘legal and complicance costs’ due to a ‘potential financial penalty curreently underway, relating to AUSTRAC proceedings.’
It added that ‘reduced international business contribution was expected to continue’ and that ‘earnings would continue to be New Zeland centric, dominated by its Auckland property.
“Future Adelaide and online growth will be enabled by increased competitive positioning,” it explained with ‘more focused VIP business reducing earnings but also reducing volatility and risk.’