SkyCity Entertainment Group (SKC) H1 2026 earnings summary

Executive summary

• Interim FY2026/1H26 results aligned with guidance, reflecting a transitional period with lower earnings due to regulatory changes, operational investments, and major initiatives underway.

• Strong cost-saving measures delivered in 1H, with further savings expected in 2H.

• NZICC opened in February 2026, with a robust pipeline of events and lower-than-expected opening costs.

• Carded play and loyalty program successfully rolled out in NZ casinos, enhancing customer insights and compliance.

• Asset monetisation efforts ongoing, targeting NZD 200 million by February 2027 to reduce leverage.

Financial highlights

• Revenue declined 2.4% year-over-year to $411.7 million, mainly from a 6.3% drop in gaming revenue, offset by growth in non-gaming segments.

• Underlying EBITDA fell 28% to NZD 85.5 million; reported EBITDA down 36.3% to $72.1 million, impacted by higher costs.

• Net profit attributable to shareholders rose to $12.1 million, nearly doubling year-over-year due to one-off adjustments.

• Positive operating cash flow of NZD 56.1 million in H1, funding NZD 36.5 million of CapEx.

• Net debt at $594 million; net debt/EBITDA at 2.83x, with all covenants met.

Outlook and guidance

• FY2026 underlying EBITDA guidance reiterated at NZD 190–210 million; reported EBITDA at NZD 170.6–190.9 million.

• Second-half earnings expected to be stronger, driven by NZICC, cost savings, and operating leverage.

• CapEx for FY2026 guided at NZD 100–110 million; no dividend planned for FY26.

• Online gaming regulation in NZ delayed, with revenue contribution now expected between Dec 2026 and June 2027.