SkyCity Entertainment Group (SKC) H1 2026 earnings summary

Executive summary

• Interim FY2026/1H26 results aligned with guidance, reflecting a transitional period with lower gaming revenue but growth in non-gaming segments, especially hotels and F&B, and major initiatives underway.

• Strong cost-saving measures delivered in H1, with further savings expected in H2.

• Carded play rollout in NZ casinos impacted gaming revenue as expected, but improved customer insights and loyalty.

• NZICC opened in February 2026, with a robust event pipeline and lower-than-expected opening costs, expected to drive significant visitation and revenue growth.

• Asset monetization program targeting NZD 200 million in proceeds within 12 months is well underway, with 99 Albert Street marketed for sale.

Financial highlights

• Group revenue for 1H26 was $411.7 million, down 2.4% year-over-year; total gaming revenue down 6.3% due to carded play and lower premium play.

• Underlying EBITDA of NZD 85.5 million, down over 28% from prior period; reported EBITDA fell 36.3% to $72.1 million.

• Reported net profit after tax nearly doubled to $12.1 million due to one-off adjustments.

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

• CapEx for FY2026 guided to NZD 100–110 million.

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 opening and cost savings, especially in Adelaide.

• No dividends anticipated for FY26 to support balance sheet strength.

• Online gaming regulation in NZ delayed, with revenue contribution now expected in late FY2027.