SkyCity Auckland projects $3M loss from five-day shutdown
Significant financial implications will occur as a result of SkyCity Entertainment Group's temporary closing.It was previously SkyCity Entertainment Group is to close for...
SkyCity suspends dividends amid financial challenges
SkyCity Entertainment Group, a gambling operator in Australia and New Zealand, has declared that it will not be paying dividends for the entirety of 2025 and the second part of 2024 in order to maintain committed liquidity headroom at sensible levels.
The business preempted its requirement to keep net debt and EBITDA levels within its financing agreements. It also mentioned the $44 million civil penalty it must pay to AUSTRAC, Australia’s authority for financial crimes.
Additionally, it mentioned that approximately $47.1 million in capital expenditures would be required to finish the New Zealand International Convention Center (NICC). Also, the group revised its earnings projection, stating that group EBITDA is anticipated to range from $173.5 million to $176.6 million in FY24. It is anticipated that the year’s net profit after tax (NPAT) will range from $74.3 million to $78.1 million.
The organization ascribes the revised numbers—which represent a drop from the previous projection—to the persistently difficult economic climate that affects consumer spending. It also draws attention to the contractor’s delays in building the Horizon Hotel, the opening of which has been rescheduled for August 2024.
Furthermore, the group is protecting itself from the possibility that this year’s Adelaide casino duty expense would rise due to a court decision regarding the “treatment of loyalty points.” The potential impact of a possible temporary suspension of the group’s casino operator’s license in New Zealand is not included in the group’s guidance for FY25; the hearing on the case has been postponed from April 15 to August.
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SkyCity Entertainment Group is to close for 5 days
SkyCity Entertainment Group is closing down its casino in Auckland for five days following a five-year host duty violation prosecution by Internal Affairs. SkyCity...
