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Highlights

  • SkyCity reported a 5% YoY drop in revenue to NZD 422 million for the six months ended 31 December 2024.
  • FY25 underlying Group EBITDA guidance has been lowered to NZD 225 million - NZD 245 million, down from the previous NZD 245 million - NZD 265 million range.

SkyCity Entertainment Group Limited (NZX:SKC) is a NZX-listed tourism, leisure, and entertainment company and has reported a decline in financial performance for the six months ended 31 December 2024, citing weaker consumer spending and increased operational costs.

Financial Performance

During the reported period, the company's group revenue stood at NZD 422 million, marking a 5% YoY decline, due to lower customer spending even though visitation levels remained stable. The Group EBITDA fell 22% YoY to NZD 113 million, driven by lower revenue and continuous investment in risk transformation programme.

The period saw underlying group NPAT dropping by 41% YoY to NZD 38 million and the reported group NPAT falling by 73% YoY to NZD 6 million, largely due to interest costs arising from the resolution of a long-standing gaming duty issue with Revenue South Australia.

Outlook

SkyCity anticipates that economic pressures will continue to impact discretionary spending through 2025. The company is also expecting increased transformation-related costs, particularly for its Building a Better Business (B3) program in Adelaide, and lower revenues from customer spend will impact FY25 results.

As a result, the company has revised its full-year underlying Group EBITDA projection to NZD 225 million - NZD 245 million, down from the previous guidance of NZD 245 million - NZD 265 million.

Additionally, the company is exploring asset monetization opportunities and expects core stay-in-business capital expenditure (capex) of NZD 60 million - NZD 70 million for FY25.

A major milestone for the company will be the February 2026 opening of the New Zealand International Convention Centre (NZICC). SkyCity anticipates this development to attract 500,000 visitor days annually, delivering significant economic benefits to Auckland and the wider New Zealand economy.

Share performance of SKC

SKC shares closed 0.83% higher at NZD 1.22 per share on 27 March 2025. Over the past year, SKC’s share price has dropped by almost 38.54% and in the last three months, it has decreased by nearly 10.64%.

52-week high of SKC is NZD 2.08, recorded on 3 April 2024 and 52-week low is NZD 1.17, recorded on 19 March 2025.

Resistance and support summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 27 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.