SkyCity Entertainment Group (SKC) H1 2025 earnings summary

Executive summary

• Interim results for FY2025 show revenue of NZD 422 million (down 5% year-over-year), with over 5.4 million visits and a maintained margin of 27%.

• Underlying NPAT was NZD 38 million (down 41%), reported NPAT NZD 6 million (down 73%), and EBITDA per visit declined by NZD 7 due to lower spend and higher compliance costs.

• Non-gaming activities now contribute nearly 30% of income, supporting diversification and risk mitigation.

• Strategic focus on risk transformation, digital and online expansion, and capital recycling to support future growth and regulatory compliance.

• Transformation programs and regulatory compliance investments, especially in Adelaide, have increased costs.

Financial highlights

• Underlying EBITDA for the half was NZD 113.1 million (down 22% year-over-year), with underlying NPAT at NZD 38 million and reported NPAT at NZD 6 million due to interest costs from a resolved casino duty dispute.

• EBITDA margin was 26.8% (down from 32.6%), and underlying EPS was 5.0cps, reported EPS 0.8cps.

• Operating cash flow was NZD 78 million, in line with the prior period, despite a NZD 76 million regulatory fine payment.

• Net debt/EBITDA at 2.8x, with NZD 309 million available liquidity and average borrowing cost of 5.96%.

• Statutory results include a NZD 31.7 million impact from the South Australia duty settlement.

Outlook and guidance

• FY2025 underlying group EBITDA guidance revised to NZD 225–245 million (from NZD 245–265 million) due to lower customer spend and higher risk transformation costs.

• Capital expenditure guidance maintained at NZD 60–70 million.

• No dividend expected for FY2025, but intention to resume as soon as financial metrics allow.

• Cautious outlook for H2 FY2025, with no significant recovery in consumer spending assumed, though conditions are improving.

• Risk transformation costs for FY25 expected at NZD 18 million, with NZD 60 million total for FY25–FY27.