SkyCity Entertainment Group is still waiting for the New Zealand online casino regulatory process to be completed before determining the value of securing a licence.
New Zealand is expected to have a regulatory system in place for online casinos by early 2026, with up to 15 three-year licences available for operators via an auction.
The country’s Government has said that the online gambling bill is expected to progress through Parliament this year, with operators only being able to offer online casino, not sports betting or lottery products. The Department of Internal Affairs will be the regulator of the online casino market.
Speaking on SkyCity’s 2025 H1 earnings call, CEO Jason Walbridge noted that the operator is still awaiting additional details on the regulations and licensing process to determine where the value of an online casino licence resides.
“We’re still waiting for more details on the regulatory framework and, in particular, the auction process, that will ultimately determine where the value lands for an online licence,” Walbridge said.
“What I can tell you is we’re focused on building our capabilities there to make sure that, once those regulations come clear, we know what it will take to get a licence as we’re well positioned for that.”
FY25 H1 results
Publishing its FY25 H1 results, SkyCity reported that group revenue dropped by 5% year-over-year to NZ$422m (H1 FY24: NZ$442.8m), while group EBITDA decreased by 22% to NZ$113.1m (H1 FY24: NZ$144.3m) with a margin of 26.8% (H1 FY24: 32.6%).
The operator said that its group revenue and EBITDA both declined in comparison to the same period last year “due primarily to lower customer spend on visitation levels essentially maintained year on year”.
Per segment, Auckland’s revenue was NZ$107.7m (H1 FY24: NZ$125.7m), with its gaming revenue “impacted by the five-day closure of gaming operations, weaker market conditions” compared to the same period last year and a “change in overall customer mix”. This was partially offset by Horizon by SkyCity Hotel contributions, car park income and a higher contribution from Sky Tower.
Elsewhere, Hamilton and Queenstown revenue was NZ$17.5m (H1 FY24: NZ$16.8m), Adelaide revenue was NZ$15.2m (H1 FY24: NZ$18.2m) with its gaming revenue up 4%, Online revenue was a NZ$1.1m loss (H1 FY24: NZ$3m), while Corporate revenue was a NZ$26.2m loss (H1 FY24: NZ$19.4m loss).
Regarding net profit after tax (NPAT), SkyCity noted that underlying group NPAT was down 41% YoY to NZ$37.8m (H1 FY24: NZ$64.5m) following a “lower level of earnings and increased costs” from its transformation programme.
Reported group NPAT declined by 73% YoY to $6.1m (H1 FY24: NZ$22.5m), which includes a “$31.7m impact from the settlement with Revenue South Australia of interest on gaming duty”.
SkyCity said that group visitation numbers increased slightly in comparison to the same period the previous year to 5.4 million (H1 FY24: 5.1 million), but there was “lower spend resulting from challenging macro-economic conditions”.
Walbridge said: “We continue to operate in challenging market conditions with subdued consumer confidence, so we’re pleased to see strength in our visitation numbers as people continue to enjoy coming to SkyCity for their entertainment.”
Outlook
SkyCity stated that its balance sheet “remained in a solid position” with $772m in total drawn debt. The operator has also completed a review of its assets with a five-year master plan created.
“In this context, SkyCity has begun a process of monetising select assets to reduce debt, move towards the resumption of paying dividends to our shareholders, and invest in growth opportunities. This will capitalise on the impending opening of the NZICC, and drive visitation and spend per visit into our highest margin gaming business.”
In addition, the Consumer and Business Services’ independent review into SkyCity Adelaide continues, as Brian Martin KC is expected to report his findings to the regulator during the first half of the year.
The operator also reiterated its plans to improve host responsibility and customer care with the introduction of mandatory carded play across its New Zealand properties in July this year, with SkyCity Adelaide to follow in 2026.
Revising its guidance, SkyCity now expects its FY25 underlying Group EBITDA to be in the range of NZ$225m to NZ$245m (previously NZ$245m to NZ$265m).
“We expect the challenging economic conditions to continue to impact discretionary spend into the 2025 calendar year,” the operator said.
“We also expect the full year result to be impacted by somewhat lower revenues from customer spend and increased transformation costs – in particular the Building a Better Business (B3) programme in Adelaide, which in FY25 is expected to be in the order of $18m.”
SkyCity continued: “The opening of the NZICC in February 2026 will be a game changer for SkyCity Auckland and New Zealand. 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 wider Auckland and New Zealand economies.”
