Photo: RNZ / Cole Eastham-Farrelly
Casino operator SkyCity has reported a small net profit, with revenue down 11 percent and underlying profit down 42 percent.
The company remained in a trading halt for a second day, to undertake a $240 million fully underwritten capital raising to address current trading conditions, as well as ongoing investment requirements.
Chief executive Jason Walbridge said SkyCity was also looking to sell some $200m assets over 12 to 18 months, including the sale of the Auckland carpark concession and the 99 Albert Street office building.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $29.2m vs loss $143.3m
- Revenue $852.2m vs $928.5m
- Underlying profit $71.5m vs $123.2m
- Full year dividend nil vs nil
The net profit was hit by a $27.3m the settlement of a South Australian casino duty, while the underlying profit includes $94m writedown on the value of Adelaide Casino and $130m tax adjustment.
"Our financial results reflect the difficult operating environment we've navigated in FY25," Walbridge said.
"The delayed economic recovery in New Zealand has led to lower discretionary spend impacting our business, and that has come through the same time as a period of elevated investment."
Chief executive Jason Walbridge said the delayed economic recovery in New Zealand had led to lower discretionary spending. Photo: RNZ / Cole Eastham-Farrelly
Walbridge said overall market conditions were expected to continue to be challenging in the short-term.
"The ongoing delay in the economic recovery in New Zealand comes at the same time as elevated costs related to upgrading our regulatory systems.
He said there were pre-opening costs for NZ International Convention Centre, expected to open in February, as well expenses related to the launch of regulated online casino gaming next winter.
There would also be costs associated with the B3 programme, which referred to a multi-year programme focused on improving anti-money laundering and counter-terrorism financing practices, as well as gambling harm minimisation and cultural transformation within at SkyCity Adelaide.
SkyCity expected the current financial year to deliver an underlying profit in a range of $190m - $210m, reflecting the costs set out above.
Capital raise
Walbridge said the $240m capital raise would involve the issue of 343 million new shares, offered to institutional and retail shareholders at 70 cents a share.
The offer included a fully underwritten institutional placement of $81m.
Eligible shareholders would be able to take part in a $159m, entitlement offer of one new share for every 3.35 existting shares held at the market close, Friday 22 August.
