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Highlights

  • SkyCity reported a 4.7% YoY drop in revenue and a 21.62% YoY fall in Group EBITDA in H1 FY2025, mainly due to weaker performance in Auckland’s gaming segment.
  • The company lowered its full-year EBITDA forecast to NZD 225–245 million, down from the previous estimate of NZD 245–265 million, citing ongoing market softness.
  • SKC shares have declined over 40% in the past year, hitting a 52-week low of NZD 1.12 on 16 April 2025.

SkyCity Entertainment Group Limited (NZX:SKC) is an NZX-listed entertainment, leisure and tourism company. In the first half of the 2025 fiscal year (H1 FY2025), the company recorded a noticeable dip in both revenue and earnings. The company faced challenges primarily driven by a decline in gaming activity at its Auckland venue.

Revenue Takes a Dip

SkyCity’s total revenue for H1 FY2025 stood at NZD 422.0 million, reflecting a 4.7% decrease compared to NZD 442.8 million during the same period last year. While there was positive growth in gaming revenue in some regions—Adelaide up 5% YoY and Queenstown up 4% YoY, the company was unable to offset a significant downturn in Auckland, where gaming revenue fell by 12% YoY.

EBITDA Sees Double-Digit Decline

Group EBITDA came in at NZD 113.1 million, down 21.62% from NZD 144.3 million in H1 FY2024. Auckland’s underperformance played a major role in this decline, with the market failing to maintain the earnings momentum of the previous corresponding period.

Outlook

Despite the soft H1 results, SkyCity is optimistic about the remainder of FY2025. The company emphasises its efforts to maintain a sustainable and prudent capital position.

SkyCity aims to ensure it has sufficient financial resources to support key business objectives, with a gradual move toward resuming dividend payments.

SkyCity Entertainment has revised its FY2025 underlying Group EBITDA guidance. The company now expects earnings to fall within the range of NZD 225 million to NZD 245 million, a downward adjustment from its earlier forecast of NZD 245 million to NZD 265 million.

Share performance of SKC

SKC shares closed 0.88% lower at NZD 1.13 on 16 April 2025. The stock has declined by 40.43% over the past year and is down 22.76% year-to-date. It reached a 52-week high of NZD 1.94 on 17 April 2024 and recently touched its 52-week low of NZD 1.12 on 16 April 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 16 April 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.